th 2 00000 oel 820 2 23 tds 1 ili ps rrs vt odt ir s ei eti

th 2 00-000- oel 820 2 23 tds 1 ili ps rrs vt ? odt ir s ei etii 101 1

Solution

Flexible Budget Variable cost Total Fixed 10000 units 12000 units 14000 units per unit cost Sales revenue 211 2110000 2532000 2954000 Variable cost: Direct material 24 240000 288000 336000 Direct labur 44 440000 528000 616000 Production supplies 26 260000 312000 364000 Sales commission 9 90000 108000 126000 Packing 16 160000 192000 224000 Total variable cost 119 1190000 1428000 1666000 Fixed cost Production manager salaries 88000 88000 88000 88000 Adveretising 100000 100000 100000 100000 Admin salaries 138000 138000 138000 138000 Depreciation 108000 108000 108000 108000 Insurance 78000 78000 78000 78000 office rent 88000 88000 88000 88000 Total fixed cost 600000 600000 600000 600000 Total cost 1790000 2028000 2266000 Nnet income 320000 504000 688000