Firenze Company?s fixed budget for the first quarter of the calendar year appears below. Prepare flexible budgets that show variable cost per unit, fixed costs and two different flexible budgets for sales volumes of 22,000 and 24,000

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Sales (20,000 units) Cost of goods sold: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Selling expenses: Sales commissions(all variable) Advertising (all fixed) General and administrative expenses: Salaries (all fixed) Rent (all fixed) Depreciation (all fixed) Net income from operations $160,000 150,000 100,000 120.000 40,000 50,000 80,000 30,000 20.000 $800,000 530.000 $270.000 220.000 $50.000 Sales (20,000 units) Cost of goods sold: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Selling expenses: Sales commissions(all variable) Advertising (all fixed) General and administrative expenses: Salaries (all fixed) Rent (all fixed) Depreciation (all fixed) Net income from operations $160,000 150,000 100,000 120.000 40,000 50,000 80,000 30,000 20.000 $800,000 530.000 $270.000 220.000 $50.000

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Flexible Budgets for Sales Volumes 22000 24000 Sales 22000 24000 880000 960000 Cost of Goods Sol... View the full answer