Question

Check my work Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Part 1 of 2 Brodrick Company expects to produce 20,400 units for the year ending December 31. A flexible budget for 20,400 units of production reflects sales of $469,200; variable costs of $61,200; and fixed costs of $143,000. points QS 23-3 Flexible budget LO P1 eBook If the company instead expects to produce and sell 27,100 units for the year, calculate the expected level of income from operations. Hint Print ------Flexible Budget at - 20,400 units 27,100 units ---...Flexible Budget------ Variable Amount per Total Fixed Cost Unit $ 23.00 3.00 $ 20.00 $ 143,000 $ $ Sales Variable cost Contribution margin Fixed costs Income from operations 54,200 469,200 61,200 408,000 143,000 265,000 $ 54,200 143,000 (88,800) $ $

Answer 1

			Flexible Budget		Flexible budget at
			Variable	total	20,400	27,100
			Amount	Fixed	units	units
			per unit	cost
Sales			23		469,200	623300
less:Variable costs			3		61,200	81300
Contribution margin			20		408,000	542000
Fixed costs				143,000	143,000	143,000
Net operating income					265,000	399,000