ToasToe Inc. (TI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhead costs is 90,000 to 200,000 units:

Variable costs:
Manufacturing	$	10.75/unit
Administrative	$	7.75/unit
Selling	$	5.75/unit
Fixed costs:
Manufacturing	$	250,100
Administrative	$	127,500

Required:

Prepare a flexible budget for each of the three possible sales levels: 128,000, 138,000, and 148,000 units. Each toaster oven is expected to sell for $27.20.

TOASTTOE INC.
Flexible Budget
	Cost Formula (per toaster)	Activity (toasters)
		128,000	138,000	148,000
Revenues
Variable costs:
Administrative
Manufacturing
Selling
Revenues
Total variable costs	$0.00	$0	$0	$0
Contribution margin
Fixed costs:
Administrative
Manufacturing
Selling
Total fixed costs		$0	$0	$0
Total costs		$0	$0	$0
Income from operations