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))
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Operating income
$
Total variable expenses
Fixed expenses
Operating expenses
Contribution margin
Sales revenue
Cost of goods sold
Variable expenses
Operating income
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, 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
$
III
$
$
1,200
$
3,000
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e98581b-45c5-4134-a11c-fc7ddc0e5149%2Fb109c01f-7b28-4142-ab57-773ccf7a85a6%2Fhp028ap_processed.jpeg&w=3840&q=75)
![Current Attempt in Progress
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 e.g. 15.25 and all other
answers to O 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
$
1,200
$
3,000
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e98581b-45c5-4134-a11c-fc7ddc0e5149%2Fb109c01f-7b28-4142-ab57-773ccf7a85a6%2Fdrwu69_processed.jpeg&w=3840&q=75)
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