PB12. LO 7.4 Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales. Sales 50,000 units Cost of goods sold $1,250,000 Direct material 450,000 Direct labor 500,000 Variable manufacturing overhead 125,000 Fixed manufacturing overhead 32,000 Cost of goods sold $1,107,000 Gross profit $ 143,000 Variable sales and administration expenses 50,000 Fixed sales and administration expenses 105,000 Income before taxes (12,000) Taxes (1,800) Net income ($ 10,200)