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of report M C Maller.. Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control We operations, the president of KHI wants
of report M C Maller.. Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control We operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current master budge n use only the current master budget. The following data are available for Kil's expected costs at production levels of 90,000, 100,000, and 110,000 units. Variable costs Manufacturing $6 per unit Administrative $4 per unit Selling $2 per unit Fixed costs Manufacturing $160,000 Administrative $ 80,000 Instructions (a) Prepare a flexible budget for each of the possible production levels: 90,000, 100,000, and 110,000 units. (b) IFKHI sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $200,000 before taxes? (CGA adapted)
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