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Sheffield 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 $ 265,000 Cost of goods sold (all variable) 180,000 Gross margin 85,000 Operating expenses 50,000 Operating income $ 35,000 Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 units. (Round unit values to 2 decimal places eg. 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 eg. -45 or parentheses e.g. (45).)

Sheffield 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 $ 265,000 Cost of goods sold (all variable) 180,000 Gross margin 85,000 Operating expenses 50,000 Operating income $ 35,000 Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 units. (Round unit values to 2 decimal places eg. 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 eg. -45 or parentheses e.g. (45).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ch 6 Question 1

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Sheffield 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 $ 265,000 Cost of goods sold (all variable) 180,000 Gross margin 85,000 Operating expenses 50,000 Operating income $ 35,000 Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 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 1,200 2,660 $ $ $ $ $ %24 %24 %24 > > > > > > >
Transcribed Image Text:Sheffield 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 $ 265,000 Cost of goods sold (all variable) 180,000 Gross margin 85,000 Operating expenses 50,000 Operating income $ 35,000 Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 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 1,200 2,660 $ $ $ $ $ %24 %24 %24 > > > > > > >
Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 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 1,200 2,660 3,820 $ $ 2$ $ %24 %24 %24 %24 %24 %24
Transcribed Image Text:Prepare a flexible budget based on sales of 1,200, 2,660, and 3,820 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 1,200 2,660 3,820 $ $ 2$ $ %24 %24 %24 %24 %24 %24
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