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		$	100,120
Cost of goods sold (all variable)			60,400
Gross margin			39,720
Operating expenses			35,200
Operating income		$	4,520

Prepare a flexible budget based on sales of 1,467, 2,610, and 3,850 units.

		Unit		1,467		2,610		3,850
		$		$		$		$
		$
		$
				$		$		$