Prepare a flexible budget based on sales of 1,415 , 2,820 , and 3,930. CALCuLATO

Question

Prepare a flexible budget based on sales of 1,415 , 2,820 , and 3,930. CALCuLATOR PRINTER VERSION ‘BACK NEXT Exercise 6-1 Bonita 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 Cost of goods sold (all variable) Gross margin Operating experkes Operating income $100,040 60,300 39,740 35,450 $ 4,290 Prepare a neoble budget based on sales of 1,415. 2,820, and 3,930 units. (Round unit values to 2 decimal places·gdsas and all other answers to decimal places, e.g- 1525. Ir operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Unit 1,415 2,820 3,930

Explanation / Answer

Unit 1415 2820 3930 Sales Revenue 50.02 70778.3 141056.4 196578.6 Less- Variable expenses Cost of goods sold 30.15 42662.25 85023 118489.5 Operating expenses 3.545 5016.175 9996.9 13931.85 Total variable expenses 33.695 47678.43 95019.9 132421.4 Contribution margin 23099.88 46036.5 64157.25 Fixed expenses 28360 28360 28360 Operating income (5260.13) 17676.5 35797.25

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