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Coronado Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president...

Coronado Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP’s expected costs at production levels of 89,000, 103,000, and 117,000 units. Variable costs Manufacturing $7 per unit Administrative $4 per unit Selling $2 per unit Fixed costs Manufacturing $151,000 Administrative $77,000

Prepare a flexible budget for each of the possible production levels: 89,000, 103,000, and 117,000 units. (List variable costs before fixed costs.)

If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $208,000 before taxes?

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ekkarill92 answered 2 years ago
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