Zip-Up Company Provides the Following Data Developed for Its Master

Zip-up Company provides the following data developed for its master budget:
$\begin{array}{c}\begin{array}{|l|}\hline \text {Sales price}\\\hline \text {Costs:}\\\hline \text {Direct materials}\\\hline \text {Direct labor}\\\hline \text {Variable overhead}\\\hline \text {Factory depreciation}\\\hline \text {Supervision}\\\hline \text {Selling expense}\\\hline \text {Administrative cost}\\\hline \end{array}\begin{array}{l|}\hline \$ 11.00 \text { per unit }\\\hline \\\hline \$ 3.00 \text { per unit } \\\hline \$ 4.75 \text { per unit } \\\hline \$ 0.50 \text { per unit } \\\hline \$ 12,000 \text { per month } \\\hline \$ 13,000 \text { per month } \\\hline \$ 0.25 \text { per unit } \\\hline \$ 9,000 \text { per month }\\\hline \end{array}\end{array}$
Required:
Prepare flexible budgets for sales of 20,000, 22,000 and 24,000 units. Use a contribution margin format.

Correct Answer:

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