Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of activity as shown below. Complete Outdoor Outfitters\'s flexible budget at the 126,800-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. Solution Units Amount 70000 Y 80000 X Difference 10000 X-Y Variable price per unit (X-Y)/ 10000 Hence, total cost= Units*Variable cost per unit + Fixed cost .

1. Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of
activity as shown below. Complete Outdoor Outfitters's flexible budget at the 126,800-unit level
of activity. Assume that the cost of goods sold and variable operating expenses vary directly with
sales and that income taxes remain at 30 percent of operating income.
Outdoor Outfitters has created a flexible budget for the 70,000-unit and the 80,000-unit levels of
activity as shown below. Complete Outdoor Outfitters's flexible budget at the 126,800-unit level
of activity. Assume that the cost of goods sold and variable operating expenses vary directly with
sales and that income taxes remain at 30 percent of operating income.
(*Note: There was a graph with information that I could not attach!*)
Solution
Units Amount 70000 Y 80000 X Difference 10000 X-Y Variable price per unit (X-Y)/ 10000
Hence, total cost= Units*Variable cost per unit + Fixed cost