Question

Logiclik sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5 per pad. Fixed expenses are $200,000 per month for volumes up to 60,000 pads. Above 60,000 pads, monthly fixed expenses are $250,000.
Requirement
Prepare a monthly flexible budget for the product, showing sales, variable expenses, fixed expenses, and operating income or loss for volume levels of 40,000, 50,000, and 70,000 pads.


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  • CreatedApril 30, 2015
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