Before the year began, the following static budget was developed for the estimated sales of 50,000 units. Sales are higher than expected and management needs to revise its budget. $ Sales revenue 1,250,000 Cost of goods sold: Direct material (450,000) Direct labour (500,000) Variable manufacturing overhead (125,000) Fixed manufacturing overhead (32,000) Total cost of goods sold (1,107,000! Gross prot 143,000 Variable sales and administration expenses (50,000) Fixed sales and administration expenses (105,000) Income before taxes (12,000) Taxes 1,800 Net income ($10,200)