Happy Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon...
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Happy Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon to view the master budget income statement.) Happy Bubbles' plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase. The company's master budget income statement for May follows. It is based on expected sales volume of 55,000 bubble kits. Happy Bubbles, Inc. Master Budget Income Statement Month Ended May 31 $ Sales revenue. Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses. Operating income 159,500 68,750 11,000 8,250 30,000 20,000 11,000 6,000 $ 155,000 $ 4,500 Requirement 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. (Enter the per unit information to two decimal places.) Happy Bubbles, Inc. Flexible Budget Income Statement Month Ended May 31 Flexible Budget per Output Unit Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense 55,000 Output Units (Kits) 60,000 65,000 Total expenses Operating income (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) Happy Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon to view the master budget income statement.) Happy Bubbles' plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase. The company's master budget income statement for May follows. It is based on expected sales volume of 55,000 bubble kits. Happy Bubbles, Inc. Master Budget Income Statement Month Ended May 31 $ Sales revenue. Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses. Operating income 159,500 68,750 11,000 8,250 30,000 20,000 11,000 6,000 $ 155,000 $ 4,500 Requirement 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 kits. (Enter the per unit information to two decimal places.) Happy Bubbles, Inc. Flexible Budget Income Statement Month Ended May 31 Flexible Budget per Output Unit Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense 55,000 Output Units (Kits) 60,000 65,000 Total expenses Operating income (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.)
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Answer rating: 100% (QA)
Particulars Sales revenue Per Unit Variable Costs Cost of Goods Sold Sales Commissions Utility ... View the full answer
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
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