Item7

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Item 7

Odessa, Inc., reports the following information concerning operations for the most recent month:

	Actual (based on actual of 630 units)						Master Budget (based on budgeted 700 units)
Sales revenue		$	104,380					$	112,000
Less
Manufacturing costs
Direct labor			16,032						16,800
Materials			13,830						15,750
Variable overhead			9,450						11,200
Marketing			6,042						6,720
Administrative			5,600						5,600
Total variable costs		$	50,954					$	56,070
Contribution margin		$	53,426					$	55,930
Fixed costs
Manufacturing			4,465						4,600
Marketing			9,382						9,000
Administrative			9,762						9,800
Total fixed costs		$	23,609					$	23,400
Operating profits		$	29,817					$	32,530

There are no inventories.

Required:

Prepare a flexible budget for Odessa, Inc. (Do not round intermediate calculations.)

Required: Prepare a flexible budget for Odessa, Inc. (Do not round intermediate calculation ODESSA, INC. Flexible Budget Sales revenue Variable costs: Manufacturing costs: Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administrative Total fixed costs Operating profits