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Question
Perkins Company provides the following data developed for its master budget:
| Sales price | $11 per unit |
| Costs: | |
| Direct materials | $3 per unit |
| Direct labor | $4.25 per unit |
| Variable overhead | $0.50 per unit |
| Factory depreciation | $12,000 per month |
| Supervision | $11,000 per month |
| Selling expense | $0.25 per unit |
| Administrative cost | $9,000 per month |
Prepare flexible budgets for sales of 20,000, 22,000, and 24,000 units. Use a contribution margin format.
Answer
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