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Sales price You are employed at XYZ Company. The company's current annual sales/production capacity is 13000 units. Towards the end of 2017, the operations manager
Sales price You are employed at XYZ Company. The company's current annual sales/production capacity is 13000 units. Towards the end of 2017, the operations manager asked you to prepare a flexible budget for possible annual sales/production levels of 10,000, 11,000, and 12,000 units, using the following information, and also work out the contribution margin and the operating profit (loss) at each of the three activity levels. $24 per unit Variable costs: Manufacturing $12 per unit Administrative $ 3 per unit Selling $ 1 per unit Fixed costs: Manufacturing $60,000 Administrative $20,000 Note: Use the format below to complete your response to this question: Units 10,000 11,000 12,000 Sales Revenue Variable costs: Manufacturing Administrative. Selling Total variable costs: Contribution margin Fixed costs: Manufacturing Administrative Operating income/loss)
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