Brodrick Company expects to produce 20,200 units for the year ending December 31. A flexible budget for 20,200 units of production reflects sales of $545,400; variable costs of $60,600; and fixed costs of $143,000.

1)If the company instead expects to produce and sell 26,700 units for the year, calculate the expected level of income from operations.

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	20,200 units	26,700 units
Contribution margin	$0.00		$0	$0
			$0	$0

2)Assume that actual sales for the year are $673,900 (26,700 units), actual variable costs for the year are $113,700, and actual fixed costs for the year are $137,000. Prepare a flexible budget performance report for the year.

BRODRICK COMPANY
Flexible Budget Performance Report
For Year Ended December 31
	Flexible Budget	Actual Results	Variances	Favorable/ Unfavorable
Contribution margin	0	0
	$0	$0