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E10.7 (LO 2), AP Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to

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E10.7 (LO 2), AP 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 AP's expected costs at production levels of 90,000,100,000, and 110,000 units. a. Prepare a flexible budget for each of the possible production levels: 90,000,100,000, and 110,000 units. b. If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $60,000 before taxes? (CGA adapted)

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