Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as
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Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as shown below.
Complete Outdoor Outfitters’s flexible budget at the 90,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operatingincome.
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70,000 Units 80,000 Units 90,000 Units Sales Cost of goods sold Gross profit on sales . Operating expenses ($90,000 fixed) - Operating income Income taxes (30% of operating income) Net income $1,400,000 $1,600,000 $ 840,000 560,000 $ 640,000 $ 370,000 960,000 410,000 $ 190,000 $ 230,000 $ 57,000 133,000 $ 161,000 $ 69,000
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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