SwiftySports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of2,500kits was prepared for the year. Fixed operating expenses account for75% of total operating expenses at this level of sales.

Sales Revenue. $235,000

Cost of goods sold (all variable) 145,000

Gross margin 90,000

Operating expenses 60,000

Operating income $30,000

a flexible budget based on sales of1,200,2,920, and3,940units