Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 91,000-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. Answer is complete but not entirely correct. 80,000 Units 70,000 91,000 Units Units $ 1,400,000 $ 1,600,000 $ 1,820,000 Sales Cost of goods sold 840,000 960,000 1,092,000 $ $ 728,000 640,000 Gross profit on sales 560,000 $ 370,000 90,000 Operating expenses ($90,000 fixed) 410,000 Operating income Income taxes (30% of operating income $ 638,000 190,000 230,000 57,000 69,000 191,400 $ 133,000 161,000 446,600 Net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Handbook Of Internal Auditing

Authors: K. H. Spencer Pickett

1st Edition

0470013168, 978-0470013168

More Books

Students also viewed these Accounting questions

Question

1. What are your creative strengths?

Answered: 1 week ago

Question

What metaphors might describe how we work together?

Answered: 1 week ago