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Problem 2 1 - 1 A Preparing and analyzing a flexible budget LO P 1 , A 1 The company's business conditions are improving. One
Problem A Preparing and analyzing a flexible budget LO P AThe company's business conditions are improving. One possible result is a sales volume of units. The company president is
confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the
budgeted amount of $ if this level is reached without increasing capacity?
An unfavorable change in business is remotely possible; in this case, production and sales volume for the year could fall to
units. How much income or loss from operations would occur if sales volume falls to this level? Enter any loss with minus sign.
options for first row in question one are
Advertising expense
DepreciationPlant equipment straightline
Direct labor
Direct materials
Entertainment expense
Insurance
Machinery repairs
Packaging
Plant management salaries
Production supplies
Salaries
Sales
Sales commissions
Sales salary
Shipping
Utilities
Contribution margin
Gross profit
Income from operations
Total fixed costs
Total variable costs
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