Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as shown below. Complete Outdoor Outfitters's flexible budget at the 122,900-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. (Omit the "$" sign in your response.)
|
70,000 Units |
|
80,000 Units |
|
122,900-units |
| Sales |
$ |
1,400,000 |
|
$ |
1,600,000 |
|
$ |
| Cost of goods sold |
|
840,000 |
|
|
960,000 |
|
|
|
|
|
|
|
|
|
|
| Gross profit on sales |
$ |
560,000 |
|
$ |
640,000 |
|
$ |
| Operating expenses ($90,000 fixed) |
|
370,000 |
|
|
410,000 |
|
|
|
|
|
|
|
|
|
|
| Operating income |
$ |
190,000 |
|
$ |
230,000 |
|
$ |
| Income taxes (30% of operating income) |
|
57,000 |
|
|
69,000 |
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
133,000 |
|
$ |
161,000 |
|
$ |
|
|
|
|
|
|
|
|