Use the following data to prepare a flexible budget for possible production levels of 5,000, 5,500 and 6,000 units. Assume all levels of production are in the same relevant range.
Sales price $12.00 per unit
- Variable costs:
- Manufacturing $6.00 per unit
- Administrative $1.50 per unit
- Selling $0.50 per unit Fixed costs(at 5,000 units):
- Manufacturing $15,000
- Administrative $5,000