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Prepare flexible budget showing the contribution margins

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Question - Priscilla manufactures Jars of Jam. The management of Priscilla's company would like to know what the effect on profits is for different activity levels. You are provided with the following details.

Sales $2 per unit.

Variable costs $1.25 per unit.

Fixed Costs:

Factory Overhead is $480,000 per annum.

Selling costs are $12,000 per month.

Administration and Financial expenses $150,000 per quarter.

Required - Prepare Flexible Budget showing the Contribution Margins at the following activity levels of light globes sold during a month: 190,000: 200,000: 210,000.

Reference no: EM132815344

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