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Appliance Possible Inc. {AP} is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a exible
Appliance Possible Inc. {AP} is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a exible budgeting system, rather than use only the current master budget The following data are available for AP's expected costs at production levels of 82,000, 96,000, and 110,000 units. Variable costs Manufacturing $6 per unit Administrative $3 per unit Selling $1 per unit Fixed costs Manufacturing $157,000 Administrative $85,000 (a) Production Levels 82000 96000 110000 ariable Costs Manufacturing 492000 i $ 576000 i $ 660000 Administrative 246000 i 288000 330000 HI Selling 82000 i 96000 110000 otal Variable Costs 820000 i 960000 i 1100000 ixed Costs Manufacturing 157,000 i 157000 i 157000 Administrative 85,000 i 85000 i 85000 otal Fixed Costs 242000 i 242000 i 242000 otal Costs 1062000 i 1202000 i $ 1342000(b) X Your answer is incorrect. If AP sells the toaster ovens for $15 each, how many units will it have to sell to make a profit of $298,000 before taxes? Units to be sold 20 eTextbook and Media Assistance Used e Textbook Video
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