Flexible BudgetKool$-$Time's flexible budget follows.

$($Click the icon to view the flexible budget.$)$

Using the data from the flexible budget, develop flexible budgets for four$-$ and nine$-$pool levels of output.

Would Kool$-$Time's managers use the flexible budgets you developed in Requirement $1$ for planning or for controlling?

Because the $4-$pool and $9-$pool output levels are

levels of sales, these flexible budgets are being developed

the period to help Kool$-$Time's managers

What specific insights can Kool$-$Time's managers gain from the flexible budgets you prepared in Requirement $1?($Enter the number of pools as a numerical number.$)$

The flexible budget for

pools signals the danger of a

Kool$-$Time managers should devote

effort to ensure that Kool$-$Time sells

$$

pools.

Kool$$Time Pools

Flexible Budget

Month Ended June $30$

Output Units $($Pools Installed$)$

Flexible Budget per Output Unit $5811$

Sales revenue $$12,000$ $$60,000$ $$96,000$ $$132,000$

Variable expenses $8,000(40,000)(64,000)(88,000)$

Fixed expenses $(20,000)(20,000)(20,000)$

Total expenses $(60,000)(84,000)(108,000)$

Operating income $$0$ $$12,000$ $$24,000$