Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,680,000 2,944,000 3,312,000 Cost of Goods Sold Direct Material $1,000,000 $ 1,000,000 Direct Labor Variable Manufacturing Overhead 240,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 Gross Profit $1,370,000 200,000 Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses 940,000 Income Before Taxes $230,000 Taxes 69,000 Net Income/Loss $161,000