Flint Possible Inc. (FP) is a manufacturer of toaster ovens. To improve control over operations, the president of FP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for FPs expected costs at production levels of 106,200, 118,000, and 129,800 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$3 per unit
Fixed costs
Manufacturing		$188,800
Administrative		$94,400

(a)

Prepare a flexible budget for each of the possible production levels: 106,200, 118,000, and 129,800 units. (List variable costs before fixed costs.)

(b)

If FP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $70,800 before taxes?

Units to be sold