Appliance Possible Incorporated (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using flexible budgeting system, rather than only use the current master budget. The following data are available for AP's expecetd cost a production range of 90,000 to 110,000 units.

Required:

a) Prepare a flexible budget for a production level of 105,000 units.

b) If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $70,000 before taxes?

Variable Costs
Manufacturing	$6 per unit
Administrative	$4 per unit
Selling	$3 per unit
Fixed Costs
Manufacturing	$160,000
Administrative	$80,000