Big Bend Co. fixed budget for the year is shown below:

Prepare a flexible budget for Big Bend Co. that shows a detailed budget for its actual sales volume of 42,000 units. Use the contribution margin format.

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Sales (50,000 units) Cost of goods sold: $1,300,000 Direct materials $150,000 450,000 Direct labor Overhead (includes $2 per unit variable overhead) Gross profit Selling expenses: Sales commissions(all variable) Rent (all fixed) Insurance (all fixed) General and administrative expenses: Salaries (all fixed) Rent (all fixed) Depreciation (all fixed) Net income from operations 240,000 840.000 $ 460,000 60,000 40,000 35,000 72,000 54,000 31.000 292.000 $ 168,000