Question
In the question below, I am unsure how to calculate the 4 computations where it is stated NEED HELP. Please see below. Thank you in
In the question below, I am unsure how to calculate the 4 computations where it is stated "NEED HELP." Please see below. Thank you in advance!
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 92,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income.
70,000 Units 80,000 Units 92,000 Units
Sales $1,400,000 $1,600,000 $1,840,000
Cost of goods sold 840,000 960,000 1,104,000
Gross profit on sales $560,000 $640,000 $736,000
Operating expenses ($90,000 fixed) 370,000 410,000 NEED HELP
Operating income $190,000 $230,000 NEED HELP
Income taxes (30% of operating income) 57,000 69,000 NEED HELP
Net income $133,000 $161,000 NEED HELP
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