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epay 200,000 bank loan at the end of September ROBLEM 23.7A Snells is a retail department store. The following cost-volume relationships were used in develop- reparing and Using ng a flexible budget for the company for the current year Flexible Budget 2 P L04 YearlyVariable Fixed Expenses per through Expenses Sales Dollar $0.600 0.082 0.022 Selling and promotion expense Building occupancy expense. Buying expense . Delivery expense .. Credit and collection expense.. Administrative expense. .. . s 210,000 186,000 150,000 0.041 111,000 72,000 531.0000.003 0.008 0.002 Totals $1 260.000 50.758 Management expected to atain a sales level of $12 million during the current year. At the end of the year, the actual results achieved by the company were as follows: Net sales Cost of goods sold Selling and promotion expense Building occupancy expense. Buying expense.... Delivery expense Credit and collection expense Administrative expense . .$10,500,000 6,180,000 1,020,000 420,000 594,000 183,000 90,000 564,000 . . Instructions a. Prepare a schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Organize your schedule as a partial multiple-step income statement, ending with operating income. Include separate columns for (1) flexible hudset amounts, (2) actual amounts, and (3) any amount over (under) budget. Use the cost volume relationships given in the problem to compute the flexible budget amounts