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VaughnSports 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.
VaughnSports 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 $265,000
Cost of goods sold (all variable) 180,000
Gross margin 85,000
Operating expenses 50,000
Operating income $35,000
budget based on sales of1,200,2,580, and3,840units.
Unit 1,200 2,580 3,840
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