Flexible Budgets
A chair manufacturer has established the following flexible budget for the month. Required:
a.What is the sales price per chair?
b.What is the expected profit if 1,600 chairs are made?

Question

Flexible Budgets
A chair manufacturer has established the following flexible budget for the month.  Required:
a.What is the sales price per chair?
b.What is the expected profit if 1,600 chairs are made?

Quizplus · Accepted Answer

The Answer is Solution to Flexible Budgets (10 minutes)
a.The sales price per chair can be calculated by dividing the sales dollars by the number of units: $10,000/1,000 units = $10/unit
b.The variable cost per unit can be calculated by dividing the variable costs by the number of units: $5,000/1,000 units = $5/unit
The expected profit of making and selling 1,600 chairs is: Solution to Flexible Budgets (10 minutes) a.The sales price per chair can be calculated by dividing the sales dollars by the number of units: $10,000/1,000 units = $10/unit b.The variable cost per unit can be calculated by dividing the variable costs by the number of units: $5,000/1,000 units = $5/unit The expected profit of making and selling 1,600 chairs is:

Solution to Flexible Budgets (10 minutes) a.The sales price per chair can be calculated by dividing the sales dollars by the number of units: $10,000/1,000 units = $10/unit b.The variable cost per unit can be calculated by dividing the variable costs by the number of units: $5,000/1,000 units = $5/unit The expected profit of making and selling 1,600 chairs is:

Flexible Budgets a Chair Manufacturer Has Established the Following Flexible Budget for Budget