CH 10 AP. Cool Furnishing's budgeted income statement for 2017 follows: Sales (10,000 units) Less: Direct materials ($2.76) $27,600 Direct labor ($.60) 6,000 Variable factory overhead ($1.68) 16,800 Fixed factory overhead 15,000 $128,000 Fixed selling & admin expenses 30,000 95,400 Income before taxes $ 32,600 How much income before taxes will appear on a flexible budget for 11,000 units? $40,360 $35,860 $40,140 $85,140