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Exercise 10-7 (Video) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin
Exercise 10-7 (Video) 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 83,000, 94,000, and 105,000 units. Variable costs Manufacturing Administrative $6 per unit $4 per unit $2 per unit Selling Fixed costs Manufacturing Administrative $140,000 $82,000 Prepare a flexible budget for each of the possible production levels: 83,000, 94,000, and 105,000 units. (List varlable costs before fixed costs.) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget If AP sells the toaster ovens for $18 each, how many units will it have to sell to make a profit of $426,000 before taxes? Units to be sold Click If you would like to Show Work for this question: Open Show Work
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