Baskin Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 71,000 T-shirts:

Sales	$ 1,236,110
Cost of Goods Sold	721,360
Gross Profit	514,750
Operating Expenses ($100,000 is fixed)	382,580
Operating Income	132,170
Income Taxes (30% of Operating income)	39,651
Net Income	$ 92,519

Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income.

If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 51,000 T-shirts.

18.) In a flexible budget for sales of 51,000 T-shirts, how much would Baskin budget for operating expenses?

$202,980.

$302,980.

$382,580.

$282,580.

19.) What unit cost did Baskin use in budgeting the cost of goods sold for the year?

$5.84

$10.16.

$17.41.

Some other amount.

20.) Assume Baskin actually achieves the 51,000 unit sales level, and that net income actually earned at this level was $49,300. A performance report would indicate that net income was:

$2,561 over budget.

$43,219 under budget.

$25,749 under budget.

At the budgeted level.