Question

Required information The following information applies to the questions displayed below) Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400.000: variable costs of $80.000, and fored costs of $150.000 If the company instead expects to produce and sell 26,000 units for the year, calculate the expected level of income from operations get Flexible Budget Flexible Variable Amount per Total Fixed Cost 20 000 units 25.000 units S OCO 00 0

Answer 1

Flexible Budget Flexible Budget at: Variable Total Fixed Amount per 20,000 units 26,000 units Cost unit 400,000 $ 80,000 $ 320,000 $ Sales $ 20.00 520,000 Variable Costs 4.00 104,000 Contribution Margin 16.00 416,000 Fixed Costs 150,000 $ 170,000 $ 150,000 150,000 266,000 Net Operating Income Planning Budget: Units Produced = 20,000 Selling Price per unit Sales / Units ProduCed Selling Price per unit $400,000 / 20,000 Selling Price per unit = $20.00 Variable Cost per unit Variable Costs /Units Produced Variable Cost per unit $80,000/20,000 Variable Cost per unit $4.00