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Using the FLEXIBLE BUDGET sample in Chapter 08,, Section 8.1.2, Exhibit 8-3, as your guide, create a flexible budget with two levels of activity, At a minimum, each level of activity in your budget should have: Sales, Variable Costs, Contribution Margin, Fixed Costs, Operating Income. CHEERFUL COLORS Flexible Budget For the Year Ended December 31, 2025 Budget Amounts per Unit Units (Batches of 100) 48,000 $ 7.50 $ 360,000 50,000 52,000 $375,000 $390,000 Sales Revenue Variable Costs: Manufacturing: Direct Materials 1.75 84,000 87,500 Direct Labor 3.00 144,000 36,000 91,000 156,000 39,000 150,000 37,500 0.75 5% of sales 18,000 18,750 293,750 282,000 78,000 19,500 305,500 84,500 81,250 Variable Overhead Selling and Administrative: Supplies Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income 25,000 25,000 22,500 47,500 25,000 22,500 47,500 22,500 47,500 $ 37,000 $ 30,500 $ 33,750 Using the FLEXIBLE BUDGET sample in Chapter 08,, Section 8.1.2, Exhibit 8-3, as your guide, create a flexible budget with two levels of activity, At a minimum, each level of activity in your budget should have: Sales, Variable Costs, Contribution Margin, Fixed Costs, Operating Income. CHEERFUL COLORS Flexible Budget For the Year Ended December 31, 2025 Budget Amounts per Unit Units (Batches of 100) 48,000 $ 7.50 $ 360,000 50,000 52,000 $375,000 $390,000 Sales Revenue Variable Costs: Manufacturing: Direct Materials 1.75 84,000 87,500 Direct Labor 3.00 144,000 36,000 91,000 156,000 39,000 150,000 37,500 0.75 5% of sales 18,000 18,750 293,750 282,000 78,000 19,500 305,500 84,500 81,250 Variable Overhead Selling and Administrative: Supplies Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income 25,000 25,000 22,500 47,500 25,000 22,500 47,500 22,500 47,500 $ 37,000 $ 30,500 $ 33,750