Exercise 6-1

Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales.

Sales Revenue	$	100,200
Cost of goods sold (all variable)		60,100
Gross margin	40,100
Operating expenses		35,170
Operating income	$	4,930

Prepare a flexible budget based on sales of 1,500, 2,840, and 3,960 units. (Round unit values to 2 decimal places e.g. 15.25 and all other answers to 0 decimal places, e.g. 145. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Unit	1,500	2,840	3,960

$	$	$	$

$

$

$

$

$