The following static budget was estimated for sales of $50,000$ units. Sales are higher

than expected and managmenet needs to revise its budget. Prepare a flexible budget

for $100,000$ units in sales

Use the following:

Unit Sales $50,000$

Sales Revenue $$1,250,000$

Cost of Goods Sold:

Direct Material $450,000$

Direct Labor $500,000$

Variable Manufacturing Overhead $125,000$

Fixed Manufacturing Overhead $32,000$

Total Cost of Goods Sold $1,107,000$

Gross Profit $$143,000$

Variable Sales and Administrative Expense $50,000$

Fixed Sales and Administrative Expense $105,000$

Income Before Taxes $(12,000)$

Tax Benefit $($Expense$)1,800$

Net Income $($Loss$)$ $$(10,200)$

Use tax rate of $21\%$

Subtract your income tax expense to get net income.