Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,

Question

Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as shown below. Complete Outdoor Outfitters's flexible budget at the 87,300-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. (Omit the "$" sign in your response.)

70,000 Units 80,000 Units 87,300-units   Sales $ 1,400,000 $ 1,600,000   $   Cost of goods sold 840,000 960,000   Gross profit on sales $ 560,000 $ 640,000 $   Operating expenses ($90,000 fixed) 370,000 410,000     Operating income $ 190,000 $ 230,000 $   Income taxes (30% of operating income) 57,000 69,000   Net income $ 133,000 $ 161,000 $

Explanation / Answer

70000 80000 87300 Sales 1400000 1600000 1746000 COGS 840000 960000 1047600 Gross Profit 560000 640000 698400 Operating Expenses Fixed 90000 90000 90000 Variable 280000 320000 349200 Operating Income 190000 230000 259200 Tax 57000 69000 77760 Net Incme 133000 161000 181440 Please consider the time devoted by rating this as lifesaver. Thank u in advance. God bless u :)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.