Question
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 $
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 cost | (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
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Financial Accounting
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
9th Edition
032418803X, 978-0324188035
