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Appliance Possible Inc

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Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 80,000, 92,000, and 104.000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $7 per unit $4 per unit $2 per unit $132.000 $70,000
Prepare a flexible budget for each of the possible production levels: 80,000, 92.000, and 104,000 units. (List variable costs before fixed costs.) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Activity level Production Levels 80,000 92,000 104,000 Variable Costs Manufacturing 560,000 644,000 728.000 Administrative 320.000 368,000 416,000 Seling 160,000 184.000 208,000 Total Variable costs 1.040,000 1.196.000 1.352.000 Fixed Costs Manufacturing 132,000 132.000 132.000 Administrative 70,000 70.000 70.000 Total Fixed Costs 202.000 202.000 202.000 Total Costs 1.242.000 $ 1.398,000 $ 1.554.000 Attempts: 1 of 1 used
Part 2 If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $246,000 before taxes? Units to be sold Save for Later Attempts: 0 of 1 used Submit Amin