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 APs expected costs at production levels of 86,000, 99,000, and 112,000 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$139,000
Administrative		$72,000

Prepare a flexible budget for each of the possible production levels: 86,000, 99,000, and 112,000 units. (List variable costs before fixed costs.)

APPLIANCE POSSIBLE INC. Flexible Production Cost Budget
AdministrativeVariable CostsFixed CostsTotal Variable CostsActivity LevelProduction LevelsTotal Fixed CostsTotal CostsManufacturingSelling
Activity LevelManufacturingProduction LevelsAdministrativeFixed CostsTotal Fixed CostsSellingVariable CostsTotal CostsTotal Variable Costs
Fixed CostsAdministrativeTotal Fixed CostsTotal CostsManufacturingVariable CostsTotal Variable CostsProduction LevelsActivity LevelSelling
Variable CostsProduction LevelsActivity LevelTotal Fixed CostsManufacturingTotal Variable CostsAdministrativeTotal CostsSellingFixed Costs		$		$		$
Production LevelsSellingAdministrativeTotal Variable CostsManufacturingFixed CostsVariable CostsTotal CostsActivity LevelTotal Fixed Costs
Production LevelsFixed CostsAdministrativeManufacturingSellingTotal CostsVariable CostsActivity LevelTotal Fixed CostsTotal Variable Costs
Fixed CostsTotal Variable CostsSellingTotal CostsTotal Fixed CostsAdministrativeManufacturingActivity LevelVariable CostsProduction Levels
Variable CostsProduction LevelsTotal CostsSellingManufacturingFixed CostsAdministrativeActivity LevelTotal Fixed CostsTotal Variable Costs
Activity LevelTotal CostsProduction LevelsSellingAdministrativeManufacturingVariable CostsTotal Variable CostsFixed CostsTotal Fixed Costs
SellingProduction LevelsManufacturingFixed CostsTotal Fixed CostsTotal Variable CostsActivity LevelTotal CostsAdministrativeVariable Costs
Total Variable CostsManufacturingAdministrativeSellingTotal Fixed CostsTotal CostsProduction LevelsVariable CostsFixed CostsActivity Level
SellingProduction LevelsTotal CostsAdministrativeManufacturingVariable CostsFixed CostsTotal Variable CostsActivity LevelTotal Fixed Costs		$		$		$

If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $236,200 before taxes?

Units to be sold