Requirements ( these are the questions that are questions to the problem)1.) prepare flexible budget income statements for the company, showing output levels of 65,000, 70,000, and 75,000 kits. 2.) why might popping bubbles' managers want to see the graph you prepared in requirement 2 as as the columnar format analysis in requirement 1? What is the disadvantage of the graphic approach?

Popping Bubbles produces multicolored bubble solution used for weddings and other events. Popping Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $7,000. Fixed utilities will be unchanged by any volume increase. The company's master budget income statement for October follows. It is based on expected sales volume of 65,000 bubble kits. Popping Bubbles, INC Master Budget Income Stmt 10/31 Sales Revenue 188,500 Variable Expenses Cost of Goods Sold 78,000 Sales Commission 13,000 Utility Expense 13,000 Fixed Expenses Salary Expense 33,000 Depreciation 18,000 Rent Expense 11,000 Utility Expense 5,000 Total Expenses $171.000 Operating Income $17,500 Requirements