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 50,000 and 90,000 units of sales. Flexible Budget 100,000 $3,460,000 80,000 90,000 Sales Cost of Goods Sold Direct Material $800,000 1,100,000 250,000 70,000 $2,220,000 $ Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative penses Income Before Taxes $1,240,000 $ 100,000 940,000 $200,000 $ Taxes 60,000 Net Income/Loss $140,000