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

Sales (50,000 units)		1,300,000
Cost of Good Sold:
Direct Materials	$150,000
Direct Labor	450,000
Overhead [includes $2/unit variable overhead]	240,000	840,000
Gross Profit		$460,000
Selling Expense:
Sale Commissions(All Variable)	60,000
Rent (all fixed)	40,000
Insurance (all fixed)	35,000
General and Administrative Expenses:
Salaries (all fixed)	72,000
Rent (all fixed)	54,000
Deprection (all fixed)	31,000	292,000
Net Income from Operations		$168,000

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

Sales

Variable cost:

DM

DL

OH

Sales Commissions

Contribution Margin

Fixed Cost:

Fixed Overhead

Rent Expense - selling

Insurance - selling

Salaries - General

Rent - General

Depreciation - General

Total Fixed cost

Income from Operations