Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 103,000-unit level 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.

70,000 Units 80,000 Units 103,000 Units

Sales $1,400,000 $1,600,000 $2,060,000

Cost of goods sold 840,000 960,000 1,236,000

Gross profit on sales $560,000 $640,000 $824,000

Operating expenses ($90,000 fixed) 370,000 410,000 ?

Operating income $190,000 $230,000 $824,000

Income taxes (30% of operating income) 57,000 69,000 ?

Net income $133,000 $161,000 $824,000