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 $591,600; variable costs of $61,200; and fixed costs of $140,000 QS 21-3 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 Total Fixed Cost 20,400 units 27,200 units per Unit $ Sales Variable cost Contribution margin Fixed costs Income from operations 29.00 3.00 26.00 $ $ 0 $ 0 $ 0 $ 0 QS 21-4 Flexible budget performance report LO P1 Assume that actual sales for the year are $746,800 (27,200 units), actual variable costs for the year are $113,200, and actual fixed costs for the year are $136,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) BRODRICK COMPANY Flexible Budget Performance Report For Year Ended December 31 Flexible Budget Actual Results Variances Favorable! Unfavorable 0 0 Contribution margin $ 0 $