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Ayayai Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible

Ayayai 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 using only the current master budget. The following data are available for APs expected costs at production levels of 72,000, 80,000, and 88,000 units.

Variable costs
Manufacturing $5 per unit
Administrative $3 per unit
Selling $3 per unit
Fixed costs
Manufacturing $128,000
Administrative $64,000

a) Prepare a flexible budget for each of the possible production levels: 72,000, 80,000, and 88,000 units. (List variable costs before fixed costs.) b) If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $48,000 before taxes?

Units to be sold

enter a number of units to be sold

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