Make a flexible budget based on sales

Assignment Help Accounting Basics

Reference no: EM132714235

Question - Swifty Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.

Sales Revenue $235,000

Cost of goods sold (all variable) 145,000

Gross margin 90,000

Operating expenses 60,000

Operating income $30,000

Required - Make a flexible budget based on sales of 1,200, 2,920, and 3,940 units?

Reference no: EM132714235

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