1. Pine Company expects to sell 1,100 wreaths in December 2016 but wants to plan

Question

1. Pine Company expects to sell 1,100 wreaths in December 2016 but wants to plan for 100 more and 150 less than expected. The wreaths sell for $15.00 each and have variable costs of $11.00 each. Fixed costs are expected to be $1,000 for the month. Prepare a flexible budget for 950, 1,100, and 1,200 wreaths Pine Company Flexible Budget For the Month Ended December 31, 2016 Budget Amounts per Unit Units 950 1,100 1,200 Choose from any list or enter any number in the input flelds and then continue to the next question.

Explanation / Answer

Flexible Budget :-

Particulars Per Unit 950 1100 1200 Sales $15.00 $14250 $16500 $18000 Less : Variable Cost $11.00 ($10450) ($12100) ($13200) Contribution $4.00 $3800 $4400 $4800 Fixed Cost $1000 $1000 $1000 Net Operating Income $2800 $3400 $3800

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