Flexible Budgets

A chair manufacturer has established the following flexible budget for the month.

Units Produced and Sold

1,000

1,500

2,000

Sales

$10,000

$15,000

$20,000

Variable Costs

(5,000)

(7,500)

(10,000)

Fixed Costs

(2,000)

(2,000)

(2,000)

Profit

$3,000

$5,500

$8,000

Required:

a)What is the sales price per chair?

b)What is the expected profit if 1,600 chairs are made?