Question: please help with part b Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants


Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 82,000, 96,000, and 110,000 units. Variable costs Manufacturing $6 per unit Administrative $3 per unit Selling $1 per unit Fixed costs Manufacturing $157,000 Administrative $85,000 Prepare a flexible budget for each of the possible production levels: 82,000, 96,000, and 110,000 units. (List variable costs before fixed costs.) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget rity Level uction Levels 82000 96000 110000 ible Costs ufacturing $ 492000 i $ 576000 4A 660000 inistrative 246000 i 288000 i 330000 18 82000 i 96000 110000 i Variable Costs 820000 i 960000 1 1100000 i Costs 157000 ufacturing 157000 i 157000 inistrative 85000 i 85000 i B5000 i Fixed Costs 242000 i 242000 i 142000 i 1062000 $ Costs 1202000 $ 1342000 (b) If AP sells the toaster ovens for $15 cach, how many units will it have to sell to make a profit of $298.000 before taxes? Units to be sold
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