Option #2: Smart Tech Company

Smart Tech Company's fixed budget (based on 7,500 units) for the first quarter of the calendar year 2019 reveals the following information shown below. Prepare a flexible budget that shows the variable cost per unit, fixed costs, and three different variable costs, and three different budgets for sales volumes of 5,000, 7,500 and 10,000. Please analyze your findings in a letter to upper management.

		Fixed Budget
Sales 7,500 Units			$2,500,000
Cost Of Goods Sold
Direct Materials	$150,000
Direct Labor	$250,000
Production Supplies	$125,000
Plant Manager Salary	$90,000		$615,000
Gross Profit			$1,885,000
Selling Expenses
Sales Commissions	$200,000
Packaging	$140,000
Advertising	$80,000		$420,000
Administrative Expenses
Administrative Salaries	$150,000
Depreciation Office Equipment	$80,000
Insurance	$45,000
Office Rent	$75,000		$350,000
Income From Operations			$1,115,000

Please submit the assignment in an Excel spreadsheet using the answer template linked here. Be sure to select the correct option using the appropriate tab at the base of the spreadsheet