Sarasota Possible Inc. (SP) is a manufacturer of toaster ovens. To improve control over operations, the president of SP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for SPs expected costs at production levels of 97,200, 108,000, and 118,800 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$3 per unit
Fixed costs
Manufacturing		$172,800
Administrative		$86,400

(a)

Prepare a flexible budget for each of the possible production levels: 97,200, 108,000, and 118,800 units. (List variable costs before fixed costs.)

SARASOTA POSSIBLE INC. Flexible Production Cost Budget
select an opening flexible budget report item Variable CostsActivity LevelTotal Fixed CostsTotal Variable CostsAdministrativeManufacturingSellingProduction LevelsTotal CostsFixed Costs
select an item AdministrativeFixed CostsVariable CostsTotal Variable CostsManufacturingProduction LevelsTotal Fixed CostsTotal CostsActivity LevelSelling		enter a number of unit		enter a number of unit		enter a number of unit
select an opening name for section one AdministrativeProduction LevelsActivity LevelSellingVariable CostsTotal Variable CostsFixed CostsTotal Fixed CostsTotal CostsManufacturing
select an item SellingManufacturingAdministrativeTotal Variable CostsTotal Fixed CostsFixed CostsTotal CostsProduction LevelsActivity LevelVariable Costs		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Production LevelsTotal CostsSellingManufacturingActivity LevelFixed CostsTotal Fixed CostsAdministrativeTotal Variable CostsVariable Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Total CostsVariable CostsProduction LevelsSellingTotal Fixed CostsActivity LevelTotal Variable CostsAdministrativeManufacturingFixed Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section one Production LevelsManufacturingSellingFixed CostsTotal CostsTotal Variable CostsTotal Fixed CostsVariable CostsActivity LevelAdministrative		enter a total amount for section one		enter a total amount for section one		enter a total amount for section one
select an opening name for section two Total Fixed CostsTotal CostsVariable CostsTotal Variable CostsSellingAdministrativeFixed CostsActivity LevelProduction LevelsManufacturing
select an item Total CostsVariable CostsActivity LevelAdministrativeProduction LevelsSellingFixed CostsTotal Fixed CostsTotal Variable CostsManufacturing		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Total CostsManufacturingVariable CostsAdministrativeProduction LevelsSellingTotal Variable CostsActivity LevelFixed CostsTotal Fixed Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section two Fixed CostsSellingManufacturingAdministrativeTotal Variable CostsVariable CostsTotal Fixed CostsTotal CostsProduction LevelsActivity Level		enter a total amount for section two		enter a total amount for section two		enter a total amount for section two
select a closing flexible budget report item ManufacturingTotal CostsProduction LevelsTotal Fixed CostsTotal Variable CostsSellingActivity LevelVariable CostsFixed CostsAdministrative		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

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(b)

If SP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $64,800 before taxes?

Units to be sold

enter a number of units to be sold