Corporation sold laser pointers for $ 20 each in 2017. Its budgeted selling price was $ 24 per unit. Other information related to its performance is given below: Actual Budgeted Units made and sold 27,800 28,100 Variable costs $112,000 $2 per unit Fixed costs $54,000 $52,000 Calculate Click's flexible budget for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Calculate Click's flexible budget for (a) revenues. Begin by determining the formula and then solve for the amount. ▼ x = Flexible budget for revenues x = Calculate Click's flexible budget for (b) variable costs. Begin by determining the formula and then solve for the amount. x = Flexible budget for variable costs x = Calculate Click's flexible budget for (c) fixed costs. Click's flexible budget for fixed costs is $ . Calculate Click's flexible budget for (d) operating income. Begin by determining the formula and then solve for the amount. (Abbreviations used: rev = revenue, vc = variable costs, fc = fixed costs.) Flexible budget for - - = operating income - - =

Solution

                                     Flexible           Actual          Budgeted

Unit sold                      27,800 units   27,800 units     28,100 units

                                       $                      $                           $

Sales price                  $ 24                  $ 20                   $ 24

Total Revenue         667,200          556,000           674,400

Variable costs           55,600             112,000            56,200

                                                                                                                                                                                                          ($2 ×28,100)

Contribution margin  611,600             444.000            618,200

Fixed costs                 52,000               54,000             52,000

                                    Operating Income     559,600         390,000           566,200

Total cost                   107,600          1.66,000              108,200

cost per unit

(Total cost ÷ total units)   3.87                5.97                     3.85