Sales Revenue$100,120Cost of goods sold (all variable)

60,400Gross margin39,720Operating expenses

35,200Operating income$4,520

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