Required information

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.] Brodrick Company expects to produce 20,400 units for the year ending December 31. A flexible budget for 20,400 units of production reflects sales of $571,200; variable costs of $61,200; and fixed costs of $144,000.

QS 23-3 Flexible budget LO P1

If the company instead expects to produce and sell 27,200 units for the year, calculate the expected level of income from operations.

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	20,400 units	27,200 units
Contribution margin

QS 23-4 Flexible budget performance report LO P1

Assume that actual sales for the year are $713,600 (27,200 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $134,000. Prepare a flexible budget performance report for the year.

BRODRICK COMPANY
Flexible Budget Performance Report
For Year Ended December 31
	Flexible Budget	Actual Results	Variances	Favorable/ Unfavorable
Contribution margin