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).)
Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
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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
>
>
>
>
>
>
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8255d54-aefa-4b8b-a065-03d53f3686c6%2F676194f8-c47b-4262-bce9-e57c595a7a4b%2Ffsh73hz_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8255d54-aefa-4b8b-a065-03d53f3686c6%2F676194f8-c47b-4262-bce9-e57c595a7a4b%2F79f9wh_processed.png&w=3840&q=75)
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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