Crane manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $800 each. The standard variable cost information for a canoe is as follows.

Direct materials		$	200
Direct labor			100
Variable overhead
Utilities			35
Indirect material			30
Indirect labor			60
Total		$	425

Annual fixed overhead cost is expected to be:

Maintenance		$	20,000
Depreciation			40,000
Insurance			27,000
Rent			30,000
Total		$	117,000

Prepare a flexible budget for the three sales levels under consideration.

Unit 2,500 3,000 3,500 3,500 $ Contribution margin Total variable expenses Sales revenue Direct labor Utilities Direct material Rent Insurance Indirect material Depreciation Variable expenses Total fixed expenses Operating income Fixed expenses Maintenance Indirect labor