Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. If the company instead produces and sells 26,000 units for the year, calculate the expected level of income from operations.

For 20,000 units, we have 170,000

For 26,000 units, we have 266,000

Explanation:

Here, we are to calculate the expected level of income from operations.

Formulas that can come in handy from the table are;

Variable amount per unit = sales/number of units

contribution margin = Sales - Variable cost

Income from operations = Contribution margin - fixed cost

Please, kindly checked attached image for tabulated result calculations.

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