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Sharqiya Company estimates sales of 15,000 units for the upcoming period. At this sales volume its budgeted income is as follows: Per Unit Total Sales
Sharqiya Company estimates sales of 15,000 units for the upcoming period. At this sales volume its budgeted income is as follows:
Per Unit Total Sales $ 60 $ 900,000 Less variable costs: Manufacturing costs 30 450,000 Selling and administrative costs 10 150,000 Contribution margin $ 20 $ 300,000 Less fixed costs: Manufacturing costs 125,000 Selling and administrative costs 155,000 Net income $ 20,000
During the period the company actually produced and sold 18,000 units.
Required: Prepare a flexible budget based on 18,000 units.
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