Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.

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50,000 units $1,250,000 450,000 500,000 125,000 32,000 Sales Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Net income $1,107,000 $ 143,000 50,000 ($ 105,000 (12,000) (1,800) 10,200)