Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales.

Sales Revenue		$	100,030
Cost of goods sold (all variable)			60,300
Gross margin			39,730
Operating expenses			35,430
Operating income		$	4,300

Prepare a flexible budget based on sales of 1,462, 2,920, and 3,950 units. (Round unit values to 2 decimal places e.g. 15.25 and all other answers to 0 decimal places, e.g. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Unit

1,462

2,920

3,950

Sales Revenue

Less Variable Expenses

Cost of Goods Sold

Operating Expenses

Total Variable Expenses

Contribution Margin

Fixed Expenses

Operating Income