Question: Can you show this questions solved with 90,000 units instead of 108,000? Outdoor Outfitters has created a flexible budget for the 70,000- unit and the
Can you show this questions solved with 90,000 units instead of 108,000?
Outdoor Outfitters has created a flexible budget for the 70,000- unit and the 80,000 - unit levels of activity shown as follows. Complete Outdoor Outfitter's flexible budget at the 108,000 - 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 operating income.
70,000 Units80,000 units108,000 Units
Sales $1,400,000$1,600,000
Cost of goods sold840,000960,000
Gross profit on sales$560,000$640,000
Operating expenses ($90,000 fixed) 370,000410,000
Operating income$190,000$230,000
Income taxes (30% of operating income) 57,00069,000
Net income 133,000$161,000
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