Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 87,000, 102,000, and 117,000 units. Variable costs Manufacturing $7 per unit Administrative $3 per unit Selling $2 per unit Fixed costs Manufacturing $138,000 Administrative $75,000 (a) Your answer is correct. Prepare a flexible budget for each of the possible production levels: 87,000, 102,000, and 117,000 units. (List variable costs before fixed costs.) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Prepare a flexible budget for each of the possible production levels: 87,000, 102,000, and 117,000 units. (List variable costs before fixed costs.) Activity Level Production Levels Variable Costs Manufacturing Administrative Selling APPLIANCE POSSIBLE INC. Flexible Production Cost Budget 87000 102000 1170 609000 714000 819000 261000 306000 351000 174000 204000 234000 Total Variable Costs 1044000 1224000 1404000 Fixed Costs Fixed Costs Manufacturing 138000 Administrative 138000 i 138000 75000 i 75000 i 75000 Total Fixed Costs 213000 Total Costs eTextbook and Media 213000 i 213000 1257000 i 1437000 1617000 Attempts: 1 of 5 used (b) If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $319,000 before taxes? Units to be sold