Reference no: EM132379666
Question
Caribbean Company's fixed budget (based on 12,500 units) for the first quarter of the calendar year 2019 reveals the following information shown below. Adjust a flexible budget that shows the variable cost per unit, fixed costs, three different variable costs, and three different budgets for sales volumes of 10,000, 12,500 and 15,000.
Fixed Budget
Sales 12,500 Units $3,000,000
Cost of Goods Sold
Direct Materials $320,000
Direct Labor $480,000
Production Supplies $180,000
Plant manager Salary $60,000 $1,040,000
Gross Profit $1,960,000
Selling Expenses
Sales Commissions $150,000
Packaging $160,000
Advertising $120,000
Administrative Expenses
Administrative Salaries $100,000
Depreciation-Office Equipment $40,000
Insurance $35,000
Office Rent $45,000 $220,000
Income From Operations $1,310,000