Amanda Manufacturing Company has prepared the following static budget income statement:

Income	ps	125,000
Variable costs		(75,000)
Contribution margin		50,000
Fixed costs		(30,000)
Net Income	ps	20,000

Budgeted costs were based on a planned sales volume of 5,000 units. Actual production was 6,000 units.

Calculate the net income amount based on a flexible budget of 6,000 units.

Answer rating: 100% (QA)

To prepare a flexible budget we need to adjust the budgeted costs to reflect the actu... View the full answer