Swifty manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information for a canoe is as follows. Direct materials $ 220 Direct labor 109 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 454 Annual fixed overhead cost is expected to be: Maintenance $ 22,200 Depreciation 42,900 Insurance 27,100 Rent 33,530 Total $ 125,730 Prepare a flexible budget for the three sales levels under consideration. Sales revenue $ 930 $ 2631900 $ Less : Variable expenses Direct material 4 220 i 622600 i Direct labor 109 i 308470 i Utilities 35 i 99050 i Indirect material 30 i 84900 i Indirect labor A 60 i 169800 i Total variable expenses 1284820 i Less : Fixed expenses Maintenance A 22200 i Depreciation 42900 i Insurance A 27100 i Rent 33530 Total fixed expenses 125730 i Operating income $ 1159090 $ 3,110 3,550 $ 2892300 $ 3301500 684200 i 781000 i 338990 i 386950 i 108850 i 124250 i 93300 106500 i 186600 213000 i 1411940 1611700 i 22200 i 22200 i 42900 42900 i 27100 27100 i 33530 33530 i 125730 i 125730 i ta $ 1286210 1485970