Question
SarasotaPossible Inc. (SP) is a manufacturer of toaster ovens. To improve control over operations, the president ofSP wants to begin using a flexible budgeting system,
SarasotaPossible Inc. (SP) is a manufacturer of toaster ovens. To improve control over operations, the president ofSP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available forSP's expected costs at production levels of97,200,108,000, and118,800units.
Variable costsManufacturing$7per unitAdministrative$4per unitSelling$3per unitFixed costsManufacturing$172,800Administrative$86,400
(a)
Prepare a flexible budget for each of the possible production levels:97,200,108,000, and118,800units.(List variable costs before fixed costs.)
SARASOTAPOSSIBLE INC.
Flexible Production Cost Budget
select an opening flexible budget report item
Variable Costs
Activity Level
Total Fixed Costs
Total Variable Costs
Administrative
Manufacturing
Selling
Production Levels
Total Costs
Fixed Costs
select an item
Administrative
Fixed Costs
Variable Costs
Total Variable Costs
Manufacturing
Production Levels
Total Fixed Costs
Total Costs
Activity Level
Selling
enter a number of unit
enter a number of unit
enter a number of unit
select an opening name for section one
Administrative
Production Levels
Activity Level
Selling
Variable Costs
Total Variable Costs
Fixed Costs
Total Fixed Costs
Total Costs
Manufacturing
select an item
Selling
Manufacturing
Administrative
Total Variable Costs
Total Fixed Costs
Fixed Costs
Total Costs
Production Levels
Activity Level
Variable Costs
$
enter a dollar amount
$
enter a dollar amount
$
enter a dollar amount
select an item
Production Levels
Total Costs
Selling
Manufacturing
Activity Level
Fixed Costs
Total Fixed Costs
Administrative
Total Variable Costs
Variable Costs
enter a dollar amount
enter a dollar amount
enter a dollar amount
select an item
Total Costs
Variable Costs
Production Levels
Selling
Total Fixed Costs
Activity Level
Total Variable Costs
Administrative
Manufacturing
Fixed Costs
enter a dollar amount
enter a dollar amount
enter a dollar amount
select a closing name for section one
Production Levels
Manufacturing
Selling
Fixed Costs
Total Costs
Total Variable Costs
Total Fixed Costs
Variable Costs
Activity Level
Administrative
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 Costs
Total Costs
Variable Costs
Total Variable Costs
Selling
Administrative
Fixed Costs
Activity Level
Production Levels
Manufacturing
select an item
Total Costs
Variable Costs
Activity Level
Administrative
Production Levels
Selling
Fixed Costs
Total Fixed Costs
Total Variable Costs
Manufacturing
enter a dollar amount
enter a dollar amount
enter a dollar amount
select an item
Total Costs
Manufacturing
Variable Costs
Administrative
Production Levels
Selling
Total Variable Costs
Activity Level
Fixed Costs
Total Fixed Costs
enter a dollar amount
enter a dollar amount
enter a dollar amount
select a closing name for section two
Fixed Costs
Selling
Manufacturing
Administrative
Total Variable Costs
Variable Costs
Total Fixed Costs
Total Costs
Production Levels
Activity 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
Manufacturing
Total Costs
Production Levels
Total Fixed Costs
Total Variable Costs
Selling
Activity Level
Variable Costs
Fixed Costs
Administrative
$
enter a total dollar amount
$
enter a total dollar amount
$
enter a total dollar amount
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(b)
IfSP sells the toaster ovens for $16each, how many units will it have to sell to make a profit of $64,800before taxes?
Units to be soldenter a number of units to be sold
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Statistics Informed Decisions Using Data
Authors: Michael Sullivan III
5th Edition
978-0134135373, 134133536, 134135377, 978-0134133539
