Response to the following problem:
Gordon knits wool caps for sale at the local ski resorts. He prepared a budget for the production and sale of 150 wool caps. Unfortunately, Gordon fell ill with a bad case of the flu and was able to make and sell only 125 wool caps. Here is Gordon's budget:
Sales Revenue 1,500.00
Variable costs:
Direct Material (yarn) 375.00
Direct Labor 750.00
Commission to Resort 112.50
Fixed costs 75.00
Net income 187.50
Prepare a flexible budget for Gordon based on the production and sale of 125 wool caps. Input all amounts as positive value. If required, round your final answers to two decimal places. Do not round your intermediate calculations.