Crane Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for APs expected costs at production levels of 86,000, 99,000, and 112,000 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$139,000
Administrative		$72,000

Prepare a flexible budget for each of the possible production levels: 86,000, 99,000, and 112,000 units. (List variable costs before fixed costs.)

CRANE INC. Flexible Production Cost Budget
Activity LevelSellingTotal CostsFixed CostsVariable CostsTotal Fixed CostsManufacturingAdministrativeTotal Variable CostsProduction Levels
Selling Activity Level Administrative Variable Costs Fixed Costs Total Variable Costs Total Costs Manufacturing Total Fixed Costs Production Levels
Total Fixed CostsTotal CostsManufacturingProduction LevelsAdministrativeSellingTotal Variable CostsVariable CostsActivity LevelFixed Costs
Selling Fixed Costs Manufacturing Total Costs Total Fixed Costs Total Variable Costs Production Levels Administrative Variable Costs Activity Level		$		$		$
Total Fixed Costs Total Costs Production Levels Administrative Total Variable Costs Variable Costs Fixed Costs Activity Level Selling Manufacturing
Variable Costs Total Fixed Costs Selling Activity Level Total Costs Administrative Production Levels Fixed Costs Total Variable Costs Manufacturing
Total CostsFixed CostsAdministrativeSellingActivity LevelTotal Fixed CostsManufacturingVariable CostsTotal Variable CostsProduction Levels
AdministrativeManufacturingFixed CostsProduction LevelsTotal CostsTotal Variable CostsTotal Fixed CostsSellingVariable CostsActivity Level
Selling Fixed Costs Manufacturing Administrative Production Levels Total Fixed Costs Total Variable Costs Total Costs Activity Level Variable Costs
Fixed Costs Total Fixed Costs Total Costs Total Variable Costs Variable Costs Activity Level Administrative Manufacturing Production Levels Selling
AdministrativeTotal Variable CostsFixed CostsManufacturingTotal Fixed CostsVariable CostsActivity LevelProduction LevelsSellingTotal Costs
Total CostsTotal Fixed CostsManufacturingSellingFixed CostsAdministrativeProduction LevelsTotal Variable CostsVariable CostsActivity Level		$		$		$

LINK TO TEXT

If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $236,200 before taxes?

Units to be sold