Mesa Companys fixed budget for the first quarter of calendar year 2011 reveals the following. Prepare flexible budgets, following the format of Exhibit 8.3, that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 7,500, 10,000, and 12,500 units.

Sales (10,000 units). Cost of goods sold $3,000,000 Direct materials Direct labor Production supplies Plant manager salary. $320,000 680,000 264,000 60,000 324,000 Gross proft Selling expenses 1,676,000 Sales commissions Packaging Advertising 20,000 210,000 00,000 430,000 Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent 80,000 30,000 18,000 24,000 52,000 1,094,000 Income from operations