Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 105,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. 70,000 Units 80,000 Units 105,000 Units

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete
Outdoor Outfitters's flexible budget at the 105,000-unit level of activity. Assume that the cost of goods sold and variable operating
expenses vary directly with sales and that income taxes remain at 30 percent of operating income.
Sales
Cost of goods sold
Gross profit on sales
Operating expenses ($90,000 fixed)
Operating income
Income taxes (30% of operating income)
Net income
70,000 Units 80,000 Units 105,000 Units
$ 1,400,000 $ 1,600,000
840,000
960,000
560,000 $
640,000
370,000
410,000
190,000 $
230,000
57,000
69,000
133,000 $
161,000
$
$
$
Transcribed Image Text:Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 105,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. Sales Cost of goods sold Gross profit on sales Operating expenses ($90,000 fixed) Operating income Income taxes (30% of operating income) Net income 70,000 Units 80,000 Units 105,000 Units $ 1,400,000 $ 1,600,000 840,000 960,000 560,000 $ 640,000 370,000 410,000 190,000 $ 230,000 57,000 69,000 133,000 $ 161,000 $ $ $
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