The master budget at Western Company last period called for sales of 225,000 units at $8.60 each. The costs were estimated to be $4.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $8.70 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000. Required: Prepare a flexible budget for Western.

Respuesta :

Answer:

$765,000

Explanation:

Particulars                                              Amount

Sales revenue = (225,000*$8.60) =   $1,935,000

Less: Variable Cost = (225,000*$4) = $900,000  

Contribution Margin                             $1,035,000

Less: Fixed Costs                                 $270,000

Operating Profits                                 $765,000