Use the following data to prepare a flexible budget for possible sales/production levels of 5,000, 5,500, and 6,000 units. Make sure to show the contribution margin at each activity level.

Sales price $11.00 per unit

Variable costs:

Manufacturing $6.00 per unit

Administrative $1.50 per unit

Selling $.50 per unit

Fixed costs:

Manufacturing $14,000

Administrative $5,000