New Rock, Inc. sells video games it has purchased from a local distributor. The following static budget is based on sales of 8,000 games. However, New Rock only sold 7,800 games during the year. Fixed costs are 30% of total operating expenses. Sales $512,000 Cost of goods sold (variable) 230,000 Gross margin 282,000 Operating expenses 220,000 Net income $ 62,000 Required: Prepare a flexible budget. HINT: Split operating expenses into fixed and variable components