Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales.

|Sales revenue|$100,220

|Cost of goods sold (all variables)|$60,400

|Gross margin|$39,820

|Operating expenses|$35,080

|Operating income|$4,740

Prepare a flexible budget based on sales of 1,464, 2,700, and 3,910 units.

Do not copy from Chegg and give complete answer with explanation