Vestal Products Inc. had the following information available for 2013: How many units should Vestal's 2013 flexible sales budget be based upon?
A) 96,000 units
B) 102,000 units
C) 98,000 units
D) 90,000 units

Question

Vestal Products Inc. had the following information available for 2013:  How many units should Vestal's 2013 flexible sales budget be based upon?
A) 96,000 units 
B) 102,000 units 
C) 98,000 units 
D) 90,000 units

Quizplus · Accepted Answer

The flexible budget should be based on the expected level of activity, which is the level at which it is expected that operations will take place. In this case, the expected level of units to be produced is 98,000, which is the midpoint between the low and high range of units. Therefore, the answer is C) 98,000 units.