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    Monthly flexilble budget

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    EgroNow sells its main product, egronomic mouse pads, for $13 each. Its variable cost is $5.60 per pad. Fixeds costs are $200,000 per month for volumes up to 60,000 pads. Above 60,000 pads, monthly fixed costs are $255,000.

    1. Prepare a montly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 30,000, 45,000, and 80,000 pads.

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    Solution Summary

    The expert examines a monthly flexible budget.