Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. Required: Complete Outdoor Outfitters's flexible budget at the 94,000-unit level of activity. 70,000 Units 80,000 Units 94,000 Units Sales $ 1,400,000 $ 1,600,000 Cost of goods sold 840,000 960,000 Gross profit on sales $ 560,000 $ 640,000 $ 0 Operating expenses ($90,000 fixed) 370,000 410,000 Operating income $ 190,000 $ 230,000 $ 0 Income taxes (30% of operating income) 57,000 69,000 Net income $ 133,000 $ 161,000 $ 0