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Flexible Budget Logiclik

Logiclik sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5 per pad. For volumes up to 60,000 pads, fixed expenses are $200,000 per month. Above 60,000 pads, monthly fixed expenses are $250,000.
Prepare a monthly flexible budget for the product, showing sales, variable expenses, fixed expenses, and operating income or loss for volume levels of 40,000, 50,000, and 70,000 pads.

Solution Summary

This solution creates a flexible budget based on three different volume levels.