Bramble Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Revenue $ 230,000 Cost of goods sold (all variable) 170,000 Gross margin 60,000 Operating expenses 50,000 Operating income $ 10,000 Prepare a flexible budget based on sales of 1,000, 2,700, and 3,960 units. (Round unit values to 2 decimal places e.g. 15.25 and all other answers to 0 decimal places, e.g. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Unit 1,000 2,700 3,960 $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $ enter a total amount for this section enter a total amount for this section enter a total amount for this section enter a total amount for this section $ enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part enter a dollar amount enter a dollar amount enter a dollar amount $ enter a total amount for this budget $ enter a total amount for this budget $ enter a total amount for this budget

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bramble Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.

Sales Revenue	$	230,000
Cost of goods sold (all variable)		170,000
Gross margin		60,000
Operating expenses		50,000
Operating income	$	10,000

Prepare a flexible budget based on sales of 1,000, 2,700, and 3,960 units. (Round unit values to 2 decimal places e.g. 15.25 and all other answers to 0 decimal places, e.g. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Unit	1,000	2,700	3,960
$ enter a dollar amount	$ enter a dollar amount	$ enter a dollar amount	$ enter a dollar amount

enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
$ enter a total amount for this section	enter a total amount for this section	enter a total amount for this section	enter a total amount for this section
$ enter a total amount for the first part	enter a total amount for the first part	enter a total amount for the first part	enter a total amount for the first part
	enter a dollar amount	enter a dollar amount	enter a dollar amount
	$ enter a total amount for this budget	$ enter a total amount for this budget	$ enter a total amount for this budget