I'm not sure how to start working this problem Exercise 6-1 Waterway Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales. Sales Revenue $ 100,120 Cost of goods sold (all variable) 60,400 Gross margin 39,720 Operating expenses 35,200 Operating income $ 4,520 Prepare a flexible budget based on sales of 1,467, 2,610, and 3,850 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 1,467 2,610 3,850 Total variable expensesOperating expensesContribution marginCost of goods soldSales revenueOperating incomeVariable expensesFixed expenses $ $ $ $ LessAdd Total variable expensesSales revenueOperating incomeOperating expensesCost of goods soldContribution marginVariable expensesFixed expenses Fixed expenses Operating income Sales revenue Total variable expenses Cost of goods sold Variable expenses Operating expenses Contribution margin Operating income Operating expenses Contribution margin Variable expenses Cost of goods sold Fixed expenses Total variable expenses Sales revenue Sales revenueTotal variable expensesOperating incomeCost of goods soldFixed expensesOperating expensesVariable expensesContribution margin $ Sales revenueVariable expensesCost of goods soldOperating incomeTotal variable expensesOperating expensesContribution marginFixed expenses $ Operating incomeVariable expensesFixed expensesContribution marginTotal variable expensesSales revenueCost of goods soldOperating expenses Contribution marginFixed expensesTotal variable expensesOperating incomeSales revenueVariable expensesCost of goods soldOperating expenses $ $ $ Click if you would like to Show Work for this question: Open Show Work

I'm not sure how to start working this problem Exercise 6-1 Waterway Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales. Sales Revenue $ 100,120 Cost of goods sold (all variable) 60,400 Gross margin 39,720 Operating expenses 35,200 Operating income $ 4,520 Prepare a flexible budget based on sales of 1,467, 2,610, and 3,850 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 1,467 2,610 3,850 Total variable expensesOperating expensesContribution marginCost of goods soldSales revenueOperating incomeVariable expensesFixed expenses $ $ $ $ LessAdd Total variable expensesSales revenueOperating incomeOperating expensesCost of goods soldContribution marginVariable expensesFixed expenses Fixed expenses Operating income Sales revenue Total variable expenses Cost of goods sold Variable expenses Operating expenses Contribution margin Operating income Operating expenses Contribution margin Variable expenses Cost of goods sold Fixed expenses Total variable expenses Sales revenue Sales revenueTotal variable expensesOperating incomeCost of goods soldFixed expensesOperating expensesVariable expensesContribution margin $ Sales revenueVariable expensesCost of goods soldOperating incomeTotal variable expensesOperating expensesContribution marginFixed expenses $ Operating incomeVariable expensesFixed expensesContribution marginTotal variable expensesSales revenueCost of goods soldOperating expenses Contribution marginFixed expensesTotal variable expensesOperating incomeSales revenueVariable expensesCost of goods soldOperating expenses $ $ $ Click if you would like to Show Work for this question: Open Show Work

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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Exercise 6-1

Waterway Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales.

Sales Revenue	$	100,120
Cost of goods sold (all variable)		60,400
Gross margin		39,720
Operating expenses		35,200
Operating income	$	4,520

Prepare a flexible budget based on sales of 1,467, 2,610, and 3,850 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	1,467	2,610	3,850
Total variable expensesOperating expensesContribution marginCost of goods soldSales revenueOperating incomeVariable expensesFixed expenses	$	$	$	$
LessAdd Total variable expensesSales revenueOperating incomeOperating expensesCost of goods soldContribution marginVariable expensesFixed expenses
Fixed expenses Operating income Sales revenue Total variable expenses Cost of goods sold Variable expenses Operating expenses Contribution margin
Operating income Operating expenses Contribution margin Variable expenses Cost of goods sold Fixed expenses Total variable expenses Sales revenue
Sales revenueTotal variable expensesOperating incomeCost of goods soldFixed expensesOperating expensesVariable expensesContribution margin	$
Sales revenueVariable expensesCost of goods soldOperating incomeTotal variable expensesOperating expensesContribution marginFixed expenses	$
Operating incomeVariable expensesFixed expensesContribution marginTotal variable expensesSales revenueCost of goods soldOperating expenses
Contribution marginFixed expensesTotal variable expensesOperating incomeSales revenueVariable expensesCost of goods soldOperating expenses		$	$	$

Click if you would like to Show Work for this question:

Open Show Work

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