Grouper Possible Inc. (GP) is a manufacturer of toaster ovens. To improve control over operations, the president of GP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for GPs expected costs at production levels of 82,800, 92,000, and 101,200 units.

Variable costs
Manufacturing		$6 per unit
Administrative		$4 per unit
Selling		$3 per unit
Fixed costs
Manufacturing		$147,200
Administrative		$73,600

(a)

Prepare a flexible budget for each of the possible production levels: 82,800, 92,000, and 101,200 units.

(b)

If GP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $55,200 before taxes?

Units to be sold

enter a number of units to be sold

POSSIBLE INC. Flexible Production Cost Budget
select an opening name for this budget Variable CostsSellingAdministrativeActivity LevelManufacturingProduction LevelsTotal Variable CostsTotal Fixed CostsFixed CostsTotal Costs
select an item Total Variable CostsFixed CostsSellingProduction LevelsVariable CostsManufacturingTotal CostsActivity LevelTotal Fixed CostsAdministrative		enter a number		enter a number		enter a number
select an opening name for section one Total Fixed CostsTotal CostsTotal Variable CostsManufacturingProduction LevelsAdministrativeVariable CostsSellingActivity LevelFixed Costs
select an item SellingProduction LevelsVariable CostsTotal CostsTotal Variable CostsManufacturingFixed CostsTotal Fixed CostsActivity LevelAdministrative		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item ManufacturingTotal Fixed CostsFixed CostsSellingVariable CostsTotal Variable CostsAdministrativeTotal CostsActivity LevelProduction Levels		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Fixed CostsActivity LevelTotal Fixed CostsManufacturingProduction LevelsVariable CostsTotal Variable CostsAdministrativeTotal CostsSelling		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section one ManufacturingActivity LevelProduction LevelsFixed CostsSellingTotal Fixed CostsAdministrativeVariable CostsTotal Variable CostsTotal Costs		enter a total amount for section one		enter a total amount for section one		enter a total amount for section one
select an opening name for section two ManufacturingAdministrativeProduction LevelsSellingTotal Variable CostsActivity LevelTotal Fixed CostsTotal CostsFixed CostsVariable Costs
select an item AdministrativeActivity LevelTotal Variable CostsProduction LevelsFixed CostsTotal Fixed CostsTotal CostsSellingVariable CostsManufacturing		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Total CostsProduction LevelsSellingTotal Variable CostsActivity LevelManufacturingVariable CostsTotal Fixed CostsAdministrativeFixed Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section two Variable CostsFixed CostsTotal Variable CostsProduction LevelsActivity LevelTotal Fixed CostsTotal CostsSellingAdministrativeManufacturing		enter a total amount for section two		enter a total amount for section two		enter a total amount for section two
select a closing name for this budget Production LevelsAdministrativeManufacturingTotal Variable CostsFixed CostsTotal Fixed CostsVariable CostsActivity LevelSellingTotal Costs		$enter a total amount		$enter a total amount		$enter a total amount