Problem: Static and Flexible Budgets
Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.
|
Units sold
|
590,000
|
600,000
|
|
Variable costs
|
1,545,000
|
1,800,000
|
|
Fixed costs
|
1,220,000
|
1,200,000
|
Prepare the actual income statement, flexible budget, and static budget.