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Variable costs: Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs Units Variable cost per unit $100,000 160,000 25,000 10,000 5,000 $300,000 5,000 $60.00 Fixed costs: Supervisory salaw Administrative salaries DepreciationiOice equip. Insurance Ofce rent Total fixed costs $55,000 80,000 10,000 8,000 12,000 $165,000 Prepare a flexible budget at activity levels of 4,000 and Sales ($200 per unit) Variable costs $60 per unit) Contribution margin ($140 per unit) Fixed costs Income ; 6,000 units. 4,000 units $800,000 240 .000 560,000 165 .000 $395,000 6,000 units $1,200,000 360,000 840,000 165,000 $675,000 Prepare a flexible budget at activity levels of 4,000 and Variable Amount per unit 6,000 units. Fixed Cost 4,000 units 6,000 units Sales Variable Costs Direct materials Direct labor Indirect materials Sales commissions Shipping Total variable costs Contribution margin Fixed Costs Supervisory salary Administrative salaries DepreciationiOffice equip. Insurance Office rent Total fixed costs $200.00 per unit $20.00 $32.00 per unit per unit $5.00 per unit $2.00 per unit $1.00 per unit $60.00 per unit $800,000 $1,200,000 80,000 128,000 20,000 8,000 4,000 240,000 560,000 120,000 192,000 30,000 12,000 6,000 360,000 840,000 $55,000 80,000 10,000 8,000 12 000 $165,000 55,000 80,000 10,000 8,000 12,000 165,000 55,000 80,000 10,000 8,000 12,000 165,000

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