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(Data for question 1 and 2) Flexosol manufactures and sells flooring suitable for any climate. The following information is provided to you: Budgeted amounts per
(Data for question 1 and 2) Flexosol manufactures and sells flooring suitable for any climate. The following information is provided to you: Budgeted amounts per unit Units sold Sale price Raw materials Direct labor 300,000 units 50.00 $ $ 15.00 $ 22.00 The indirect manufacturing costs behave as follows: At a sales and production level of 250,000 units, they are $ 972,500. And at a sales and production level of 200,000 units, it's $ 810,000. For a volume of 200,000 units, the overall budget for commercial and administrative costs is $ 950,000 and the unit variable portion at this level is $ 2.50. The actual results were as follows: Units sold: Turnover: Raw materials: MOD: FIF (variables): Commercial and adm. Costs (variables) FIF (fixed): Commercial and adm cost. (fixed). $ 350,000 $ 16,975,000 $ 5,293,000 $ 7,202,500 $ 1,005,000 $ 1,172,500 $ 200,000 $ 475,000 If the company prepares the 2020 budget based on 300,000 units manufactured and sold, what is the budgeted net profit for next year? Question 1 options: 1565000 244500 2465000 840,000
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