Margies Creations manufactures ceramic figurines. In planning for the coming year, the budget committee is considering two different sales targets: 6,000 figurines and 8,000 figurines. Figurines sell for $39 each. The standard cost information for one figurine is as follows:

Direct materials	$6
Direct labor	$10
Variable manufacturing overhead	$4
Annual expected fixed manufacturing overhead cost	$4,000
Variable selling & administrative expenses	$2
Fixed selling & administrative expenses	$42,000

Required: Prepare a flexible budget for the two sales levels under consideration. Be sure everything is properly labelled and in good format using standard income statement format. The format below will help you get started:

Item	6,000 units	8,000 units
Sales Revenue
Cost of goods sold
Gross profit
Etc.