MOCKTOE INC.
Flexible Budget
	Cost Formula (per toaster)	Activity (toasters)
		110000	120000	130000
Variable costs:
Total variable costs	$0.00	$0	$0	$0
Fixed costs:
Total fixed costs		$0	$0	$0
Total costs		$0	$0	$0

ToasToe Inc. (TI) is a manufacturer of heating elements for toaster overs. To improve control over operations, the president wants to install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhrad costs is 80,000 to 180,000 units:

Variable costs:
Manufacturing	$	8.50/unit
Administrative	$	5.50/unit
Selling	$	3.50/unit
Fixed costs:
Manufacturing	$	170,000
Administrative	$	105,000

Required:

Prepare a flexible budget for each of the three possible sales levels: 110,000, 120,000, and 130,000 units. Each toaster oven is expected to sell for $20.00.