Hello!

I could use some assistance with the following Variance Analysis exercise:

Preparing a flexible budget; Roddgers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales revenue $250,000.00 Cost of goods sold (all variable) $160,000.00 Gross margin $90,000.00 Operating expenses $60,000.00 Operating income $30,000.00 Create a flexible budget based on sales of 1,200, 3,000, and 4,000 units.