- Exercises Saved Exercise 23.10 Preparing a Flexible Budget (LO23-6) Outdoor Outfmers has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows, Completer Outdoor Outfitters's flexible budget at the 105,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. s 105.000 Units 70,000 Units 80,000 Units elock Sales 1,400,000 1600,000 Cost of goods sold Ceoss proft on sales 040,000 960 000 560,000 $ 640,000 Ask Operating expenses (300.000 fxed) 370.000 410 000 Operating income Income taxes (30% of operating incomes 100,000 230 000 57.000 69.000 Net income 133.000 161.000 ulaaces Prev 6 of 6 E Next X esc % 2 P T Y U W ab K F H S A lock M V B C X LL