Bikes operates a bike shop in downtown. Currently, the shop only sells

one bike,Information related to Crash and the bike are as follows:

Selling price 1000

Variable costs 650

The static budget for Crash assuming the following:

a. Budgeted Sales Price of $1,000 per Zoom-Zoom

b. Budgeted DM of $400 per Zoom-Zoom

c. Budgeted DL of $100 per Zoom-Zoom

d. Budgeted Variable OH of $100 per Zoom-Zoom

e. Budgeted Variable SGA of $50 per Zoom-Zoom

f. Fixed OH is $60,000 per year

g. Fixed SGA is $40,000 per year

h. The owner, Crash, estimates that sales for the year will be 500 Zoom-Zooms

Static budget is below

A

B

C

D

1

Item

Unit Price

No. of Units

Total

2

Sales Price

$ 1,000

500

$ 500,000

3

Direct Materials

$ 400

$ (200,000)

4

Direct Labor

$ 100

$ (50,000)

5

Variable Overhead

$ 100

$ (50,000)

6

Variable SGA

$ 50

$ (25,000)

7

Fixed Overhead

$ (60,000)

8

Fixed SGA

$ (40,000)

9

Profit

75,000

I need help with part 2 ": Based on Crash's previous 5 years in business coupled with his deep understanding of

the local bike scene, Crash believes his estimated sales of 500 Zoom-Zooms for the year

is appropriate; however, he wants to analyze the impact that different sales volumes

would have on his business. As such, on the same sheet as the static budget in #1,

what are the flex budgets for the following sales volumes in excel format:

a. 250 Zoom-Zooms

b. 400 Zoom-Zooms

c. 550 Zoom-Zooms

d. 600 Zoom-Zooms

e. 720 Zoom-Zooms