Monty Possible Inc. (MP) is a manufacturer of toaster ovens. To improve control over operations, the president of MP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for MP's expected costs at production levels of 88,200, 98,000, and 107,800 units.

Variable costs
Manufacturing		$7per unit
Administrative		$4per unit
Selling		$3per unit
Fixed costs
Manufacturing		$156,800
Administrative		$78,400

(a)

Prepare a flexible budget for each of the possible production levels: 88,200, 98,000, and 107,800 units. (List variable costs before fixed costs.)

MONTY POSSIBLE INC. Flexible Production Cost Budget
select an opening name for this budget Variable CostsProduction LevelsSellingTotal Fixed CostsTotal CostsTotal Variable CostsAdministrativeActivity LevelFixed CostsManufacturing
select an item Fixed CostsProduction LevelsActivity LevelVariable CostsTotal Fixed CostsSellingManufacturingAdministrativeTotal CostsTotal Variable Costs		enter a number		enter a number		enter a number
select an opening name for section one AdministrativeManufacturingActivity LevelSellingVariable CostsTotal CostsTotal Variable CostsFixed CostsProduction LevelsTotal Fixed Costs
select an item Total Fixed CostsManufacturingAdministrativeSellingTotal Variable CostsActivity LevelProduction LevelsVariable CostsFixed CostsTotal Costs		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Activity LevelTotal Variable CostsTotal Fixed CostsAdministrativeSellingManufacturingFixed CostsProduction LevelsTotal CostsVariable Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Total Fixed CostsActivity LevelProduction LevelsTotal CostsAdministrativeSellingManufacturingTotal Variable CostsVariable CostsFixed Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section one Total Variable CostsVariable CostsManufacturingTotal Fixed CostsAdministrativeFixed CostsTotal CostsProduction LevelsSellingActivity Level		enter a total amount for section one		enter a total amount for section one		enter a total amount for section one
select an opening name for section two ManufacturingTotal CostsFixed CostsVariable CostsSellingProduction LevelsTotal Fixed CostsAdministrativeTotal Variable CostsActivity Level
select an item Fixed CostsProduction LevelsTotal Fixed CostsTotal Variable CostsVariable CostsTotal CostsManufacturingSellingActivity LevelAdministrative		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Total CostsTotal Fixed CostsSellingAdministrativeFixed CostsVariable CostsManufacturingTotal Variable CostsActivity LevelProduction Levels		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section two Activity LevelAdministrativeManufacturingProduction LevelsTotal Fixed CostsSellingTotal CostsFixed CostsTotal Variable CostsVariable Costs		enter a total amount for section two		enter a total amount for section two		enter a total amount for section two
select a closing name for this budget ManufacturingTotal CostsActivity LevelSellingAdministrativeTotal Variable CostsTotal Fixed CostsVariable CostsProduction LevelsFixed Costs		$enter a total amount		$enter a total amount		$enter a total amount

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(b)

If MP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $58,800 before taxes?

Units to be sold

enter a number of units to be sold

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