P10-71B PREPARE A FLEXIBLE BUDGET FOR PLANNING (Learning Objective 5) Creative Bubbles produces multicoloured bubble solution used for weddings and other events. Creative Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $6,000. Fixed utilities will be unchanged by any volume increase. The company's static budget income statement for December follows. It is based on expected sales volume of 65,000 bubble kits. P10-71B PREPARE A FLEXIBLE BUDGET FOR PLANNING (Learning Objective 5) Creative Bubbles produces multicoloured bubble solution used for weddings and other events. Creative Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $6,000. Fixed utilities will be unchanged by any volume increase. The company's static budget income statement for December follows. It is based on expected sales volume of 65,000 bubble kits