Outdoor outfitters has created a flexible budget for the

Reference no: EM13581156

Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as shown below. Complete Outdoor Outfitters's flexible budget at the 122,900-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. (Omit the "$" sign in your response.)

	70,000 Units		80,000 Units		122,900-units
Sales	$	1,400,000	$	1,600,000	$
Cost of goods sold		840,000		960,000

Gross profit on sales	$	560,000	$	640,000	$
Operating expenses ($90,000 fixed)		370,000		410,000

Operating income	$	190,000	$	230,000	$
Income taxes (30% of operating income)		57,000		69,000

Net income	$	133,000	$	161,000	$

Reference no: EM13581156

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