Question

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Use the following information for the Quick Study below. (The following information applies to the questions displayed below. Brodrick Company expects to produce 21,900 units for the year ending December 31. A flexible budget for 21,900 units of ts sales of $503,700; variable costs of $65,700; and fixed costs of $142,000. QS 23-3 Flexible budget LO P1 If the company instead expects to produce and sell 27,300 units for the year, calculate the expected level of income from operations. ...Flexible Budget at ---- Flexible Budget...... Variable Total Fixed Amount per Cost Unit 21,900 units 27,300 units Contribution margin $ 0.00

Answer 1

Flexible Budget
	Variable Amount per unit	Total Fixed cost	21900 units	27300 units
Sales Revenue	23	0	503,700	627,900
Less: Variable Expenses	3	0	65,700	81,900
Contribution Margin	20		438,000	546,000
Less: Fixed Expenses	0	142,000	142,000	142,000
Income From Operations	20		296,000	404,000
Flexible Budget Performance Report
	Flexible Budget	Actual Results	Variances	F/U
Sales Revenue	627,900	583,900	44,000	Unfavorable
Less: Variable Expenses	81,900	113,300	31,400	Unfavorable
Contribution Margin	546,000	470,600	75,400	Unfavorable
Less: Fixed Expenses	142,000	135,000	7,000	Favorable
Income From Operations	404,000	335,600	68,400	Unfavorable