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E10-7 Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a

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E10-7 Appliance Possible 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 90,000, 100,000, and 110,000 units. . Variable costs Manufacturing Administrative Selling $6 per unit $4 per unit $3 per unit Fixed costs Manufacturing $160,000 Administrative $ 80,000 Instructions (a) Prepare a flexible budget for each of the possible production levels: 90,000, 100,000, (b) If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a (CGA adapted) and 110,000 units. profit of $60,000 before taxes

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