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 42000 units. Use the contribution margin format.

Sales (50,000 units).. Cost of goods sold: Direct materials . S1,300,000 $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: 240.000 840.000 S 460,000 60,000 40,000 35,000 Salaries (all fixed). Rent (all fixed). Depreciation (all fixed).. Net income from operations... 72,000 54,000 31,000 . 292,000 $ 168,000