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Exercise 23-07 a-b (Video) Waterway Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin
Exercise 23-07 a-b (Video) Waterway 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 81,000, 92,000, and 103,000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $6 per unit $3 per unit $2 per unit $130,000 $82,000 Your answer is partially correct. Try again. Prepare a flexible budget for each of the possible production levels: 81,000, 92,000, and 103,000 units. (List variable WATERWAY INC. Flexible Production Cost Budget T Activity Level Selling | 1,377,000 1,564,000 | 1,751,000 Variable Costs =| T Manufacturing :|| | || ]] J 486,000 552,000 J 618,000 Administrative | 243,000 | 276,000 | 309,000 Selling 162,000 | 184,000| | 206,000 T Total Variable Costs | | 891,000 1,012,000 1,133,000 PPT Fixed Costs | Manufacturing ] 130,000 | 130,000 2000 * 42.00 T 130,000 * 0.00] T Total Fixed Costs 212,000 212,000 212,000 Production Levels | 2010 ) 2010 ) 4600) Your answer is correct. If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $440,200 before taxes? Units to be sold 108,700 Click if you would like to Show Work for this question: Open Show Work
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