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Exercise 25-07 a-b Lily Inc

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Exercise 25-07 a-b Lily 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 86,000, 97,000, and 108,000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $6 per unit $4 per unit $2 per unit $138,000 $77,000 Prepare a flexible budget for each of the possible production levels: 86,000, 97,000, and 108,000 units. (List variable costs before fired costs.) LILY INC. Flexible Production Cost Budget $ > > >
> > > $ $ If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $225,800 before taxes? Units to be sold
Fixed Costs Manufacturing Selling Total Fixed Costs Total Costs Administrative Production Levels Total Variable Costs Variable Costs Activity Level