Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Shipping Flexible Budget Flexible Budget for: Variable Units Unit Amount per Total Fixed Cost Sales of Sales of Unit 6,000 8,000 $ $ $ 400.00 2,400,000 3,200,000 40.00 240,000 320,000 70.00 420,000 560,000 25.00 150,000 200,000 20.00 120,000 160,000 22.00 132,000 176,000 Total variable costs 177.00 Contribution margin $ 223.00 Fixed costs Supervisor salary Administration salaries Depreciation-Office equipment Insurance Office rent Total fixed costs Income 1,062,000 1,416,000 1,338,000 1,784,000 65,000 65,000 65,000 210,000 210,000 210,000 35,000 35,000 35,000 20,000 20,000 20,000 36,000 36,000 36,000 $ 366,000 $ 366,000 $ 366,000 $ $ 972,000 1,418,000