Rogers 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 Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 250,000 160,000 90,000 60,000 $ 30,000 Prepare a flexible budget based on sales of 1,200, 3,000, and 4,000 units. (Round unit values to 2 decimal places eg. 15.25 and all other answers to O decimal places, eg. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses eg. (45))

Rogers 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 Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 250,000 160,000 90,000 60,000 $ 30,000 Prepare a flexible budget based on sales of 1,200, 3,000, and 4,000 units. (Round unit values to 2 decimal places eg. 15.25 and all other answers to O decimal places, eg. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses eg. (45))

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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