Help Save & Exit McElroy Company has prepared the following master budget for 2019. Although McElroy has the capacity to manufacture 50,000 units management expected the likely demand for its product to be 40,000 units in 2019; as such, it prepared the master budget to manufacture and sell 40,000 units. In early January 2020, the company was pleasantly surprised to find out that it manufactured and sold 45,000 units in 2019. McElroy Company Master (Static) Budget or Year Ending December 31, 2819 Sales (40,800 units) Cost of Goods Sold: $2,800,000 Direct materials Direct labor Indirect materials (variable) Indirect labor (variable) Depreciation Salaries Utilities (88% fixed) Maintenance (48% variable) $800,800 300,800 24,000 36,880 300,00 200,6e0 180,000 50,800 1,810,000 $ 99e,800 Gross profit Operating expenses: Commissions (5% of sales) Advertising (fixed) Wages (variable) $140,000 150,600 100,000 This question will be sent to your instructor for grading Prev 1 of 27i Next