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, 97,000, and 108,000 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$130,000
Administrative		$79,000

(a)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Prepare a flexible budget for each of the possible production levels: 86,000, 97,000, and 108,000 units. (List variable costs before fixed costs.)

please show work for (b)

APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Activity Level Production Levels a Variable Costs Manufacturing $ $ $ Administrative | Selling Total Variable Costs Fixed Costs Manufacturing 130000 i 130000 i 130000 i Administrative 79000 i 79000 i 79000 i Total Fixed Costs 4 Total Costs $ $ $ (b) If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $368,000 before taxes? Units to be sold