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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 flexible
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 expect ed costs at production levels of 80,000, 9s,000, and 110,000 units. Variable costs Manufacturing $6 per unit $3 per unit Administrative Selling $2 per unit Fixed costs $139,000 Manufacturing Administrative $79,000
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