Flexible Budget 100,000 80,000 90,000 Sales $3,680,000 2,944,000 3,312,000 Cost of Goods Sold Direct Material $1,000,000 $ Direct Labor 880,000 X 1,000,000 240,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,310,000 $ Gross Profit Variable Sales and Administrative Expenses $1,370,000 $ 200,000 940,000 Fixed Sales and Administrative Expenses Income Before Taxes $230,000 $ Taxes 69,000 Net Income/Loss $161,000