Flexible budgets and standard cost systems

E23-15 (similar to) Question Help Office Plus sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5.20 per pad. Fixed costs are $200,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $270,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 70,000 pads. Office Plus Flexible Budget Budget Amounts Per Unit Units 40,000 45,000 70,000 Sales Revenue 11 440,000 495,000 770,000 Variable Costs 5.2 208,000 234,000 364,000 Contribution Margin 232,000 261,000 406,000 Fixed Costs 200,000 200,000 200,000 Operating Income 32,000 61,000 206,000