Use the information in Figure 7-12 of the chapter.

Required:
Prepare flexible budgets for the production and sale of 29,000 units and 31,000,respectively.

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1 Item 2 Sales ($150 per unit) 3 Direct materials 4 Lumber ($20 per unit) 5 Paint ($4 per unit) 6 Direct labor: 7 Cutting ($3.75 per unit) 8 Assembly ($2.40 per unit) 9 Painting ($1.50 per unit) 10 Variable factory overhead ($6.93 per unit) 28,000 units 30,000 units 32,000 units $4,200,000 $4,500,000 $4,800,000 560,000 112,000 600,000 640,000 18,00) 112,500 72,000 105,000 67,200 42,000 94,040 120,000 76,800 48,000 221,760 207,900 11 Variable selling and administrative expense ($25.79 per unit) Contribution rouveneadxse1415090 97,640 $2,568,900$2,740,160 207,825 $2,3 14 Fixed factory overhead 15 Fixed selling and administrative expense 16 Operating income 207,825 ra 207,825 $1.A1 1758,510