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Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 107,000-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. 70,000 Units 80,000 Units 107,000 Units Sales $ 1,400,000 $ 840,000 1,600,000 Cost of goods sold 960,000 Gross profit on sales 2$ 560,000 $ 640,000 Operating expenses ($90,000 fixed) Operating income Income taxes (30% of operating income) 370,000 410,000 230,000 190,000 S 57,000 69,000 Net income 133,000 $ 161,000

Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 107,000-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. 70,000 Units 80,000 Units 107,000 Units Sales $ 1,400,000 $ 840,000 1,600,000 Cost of goods sold 960,000 Gross profit on sales 2$ 560,000 $ 640,000 Operating expenses ($90,000 fixed) Operating income Income taxes (30% of operating income) 370,000 410,000 230,000 190,000 S 57,000 69,000 Net income 133,000 $ 161,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 62E: Flexible Budget for Various Levels of Production Budgeted amounts for the year: Required: 1. Prepare...
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R4 Assignment Saved Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 107,000-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. 70,000 Units 80,000 Units 107,000 Units $ 1,400,000 $ 1,600,000 960,000 Sales Ask Cost of goods sold 840,000 Gross profit on sales 2$ 560,000 $ 640,000 Operating expenses ($90,000 fixed) 370,000 190,000 $ 410,000 Operating income Income taxes (30% of operating income) 230,000 57,000 69,000 Net income 133,000 $ 161,000 Mc Graw Hill < Prev 5 of 20 Next >
Transcribed Image Text:R4 Assignment Saved Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity shown as follows. Complete Outdoor Outfitters's flexible budget at the 107,000-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. 70,000 Units 80,000 Units 107,000 Units $ 1,400,000 $ 1,600,000 960,000 Sales Ask Cost of goods sold 840,000 Gross profit on sales 2$ 560,000 $ 640,000 Operating expenses ($90,000 fixed) 370,000 190,000 $ 410,000 Operating income Income taxes (30% of operating income) 230,000 57,000 69,000 Net income 133,000 $ 161,000 Mc Graw Hill < Prev 5 of 20 Next >
Which of the following is not a benefit of a careful and thorough budgeting process? Multiple Choice Ask The budget may provide advance warning of pending problems. Budgeted net Income assures the company of operating profitably. Budgets provlde a yardstick for evaluating future performance. Budgeting Increases management's awareness of the company's external economic environment. < Prev 7 of 20 aw
Transcribed Image Text:Which of the following is not a benefit of a careful and thorough budgeting process? Multiple Choice Ask The budget may provide advance warning of pending problems. Budgeted net Income assures the company of operating profitably. Budgets provlde a yardstick for evaluating future performance. Budgeting Increases management's awareness of the company's external economic environment. < Prev 7 of 20 aw
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