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

Sales (50,000 units)		$1,300,000
Cost of goods sold:
Direct materials	$150,000
Direct labor	450,000
Overhead (includes $2 per unit variable overhead)	240,000	840,000
Gross profit		$ 460,000
Selling expenses:
Sales 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
Depreciation (all fixed)	31,000	292,000
Net income from operations		$ 168,000

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

Use the attached template to prepare a flexible budget for Big Ben

Big Bend Company Flexible budget Dec 31st 2019 Fixed Budget Actual Budget Units Per unit $ 26.00 Sales Variable Cost Direct Material Direct labor Variable overhead Sales Commission Total variable cost Contribution Margin $ 3.00 $ 9.00 $ 2.00 $ 1.20 Fixed cost Fixed overhead Rent expense - selling insurance expense - selling Salaries expense general & admin Rent expense - general & admin Depreciation - General & admin Total Fixed Income from operations