. Identify and explain the primary differences between fixed and flexible budgets. (1 point)

2. A company's flexible budget for 60,000 units of production showed sales of $96,000, variable costs of $36,000, and fixed costs of $26,000. What operating income would be expected if the company produces and sells 70,000 units? Use a contribution margin format. You must show how you calculated each number for credit. Use the template below for all of the remaining problems. Check: Operating income should be greater than $43,000. (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $

3. A company's flexible budget for 30,000 units of production showed sales of $90,000, variable costs of $36,000, and fixed costs of $23,000. Prepare a flexible budget for 25,000 units assuming it is within the same relevant range of production. Use a contribution margin format You must show how you calculated each number for credit. Use the template below. Check: Operating income should be greater than $20,000. (3 points)

Sales $

Variable costs $

Contribution margin $

Fixed costs $

Operating income $