Preparing flexible budgets (adapted from CPA exam). Exhibit 9.21 provides information (totals) concerning the operations of the Maxum Company for the current period. The firm has no inventories. Prepare a flexible budget for the company

Exhibit 9.21:

MAXUM COMPANY

Actual Master Budget

Sales Volume......................................... 170 Units 200 Units

Sales Revenue........................................ $18,400 $20.000

Manufacturing Cost of Goods Sold:

Variable........................................... 6,880 7,800

fixed............................................. 485 500

Cost of Goods Sold................................. $ 7365 $ 8300

Gross Profit $11035 $11700

Operating Costs:

Marketing Costs:

Variable..................................... ... 2060 2200

Fixed........................................... 1040 1000

Administrating Costs. All fixed................. 995 1000

Total Operating Costs............................. 4095 4200

Operating Profits...................................... 6940 7500

Prepare a flexible budget for the company