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 85,000, 95,000, and 105,000 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$3 per unit
Selling		$1 per unit
Fixed costs
Manufacturing		$133,000
Administrative		$80,000

Prepare a flexible budget for each of the possible production levels: 85,000, 95,000, and 105,000 units. (List variable costs before fixed costs.)

APPLIANCE POSSIBLE INC. Flexible Production Cost Budget
Total CostsManufacturingAdministrativeProduction LevelsSellingTotal Fixed CostsVariable CostsTotal Variable CostsActivity LevelFixed Costs
Fixed Costs Selling Total Fixed Costs Total Costs Administrative Total Variable Costs Production Levels Variable Costs Activity Level Manufacturing
Total CostsProduction LevelsSellingAdministrativeManufacturingFixed CostsTotal Fixed CostsTotal Variable CostsVariable CostsActivity Level
Activity Level Variable Costs Production Levels Total Variable Costs Administrative Manufacturing Total Fixed Costs Fixed Costs Selling Total Costs		$		$		$
Activity Level Production Levels Selling Total Variable Costs Total Costs Total Fixed Costs Variable Costs Administrative Fixed Costs Manufacturing
Activity Level Total Costs Total Fixed Costs Variable Costs Production Levels Manufacturing Selling Total Variable Costs Administrative Fixed Costs
Production LevelsFixed CostsAdministrativeManufacturingSellingTotal CostsTotal Variable CostsTotal Fixed CostsVariable CostsActivity Level
Variable CostsActivity LevelTotal CostsTotal Fixed CostsTotal Variable CostsAdministrativeFixed CostsManufacturingProduction LevelsSelling
Total Costs Activity Level Total Fixed Costs Production Levels Manufacturing Administrative Total Variable Costs Fixed Costs Variable Costs Selling
Manufacturing Activity Level Variable Costs Total Fixed Costs Production Levels Administrative Fixed Costs Selling Total Costs Total Variable Costs
ManufacturingTotal CostsTotal Fixed CostsTotal Variable CostsActivity LevelAdministrativeFixed CostsVariable CostsProduction LevelsSelling
Production LevelsSellingTotal Variable CostsVariable CostsAdministrativeActivity LevelTotal CostsFixed CostsManufacturingTotal Fixed Costs		$		$		$

If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $333,000 before taxes?

Units to be sold