QS 23-2 Flexible budget LO P1

Based on predicted production of 24,700 units, a company anticipates $320,000 of fixed costs and $419,900 of variable costs. If the company actually produces 18,700 units, what are the flexible budget amounts of fixed and variable costs?

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	24,700 units	18,700 units
Total budgeted costs

Brodrick Company expects to produce 21,400 units for the year ending December 31. A flexible budget for 21,400 units of production reflects sales of $535,000; variable costs of $64,200; and fixed costs of $141,000.

QS 23-3 Flexible budget LO P1

If the company instead expects to produce and sell 26,000 units for the year, calculate the expected level of income from operations.

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	21,400 units	26,000 units
Contribution margin