Sheffield Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 80,000, 95,000, and 110,000 units.

Variable costsManufacturing$6per unitAdministrative$3per unitSelling$2per unitFixed costsManufacturing$139,000Administrative$79,000