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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?
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