Artic Camping Gear’s currently sells 35,000 units at $73 per unit. Its expenses are as follows:

Management believes it can increase sales by 2,000 units for every $5 decrease in sales price. It also believes the additional sales will allow a decrease in direct material of $1 for each additional 2,000 units. Prepare a flexible budgeted income statement for 35,000-, 37,000-, and 39,000-unit sales.

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Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Variable sales and administration expenses per unit Fixed manufacturing overhead Fixed sales and administration expenses Taxes *of income before taxes $ tA 413 7 1.50 21,000 89,000 15%*