Whidbey Co Prepare a Flexible Budget for Whidbey Co

question 102

Essay

Whidbey Co. fixed budget for the year is shown below:
$\begin{array}{|l|r|r|} \hline \text { Sales (50,000 units) } &&\$1,300,000\\\hline \text {Cost of goods sold: } &\\ \hline\text { Direct materials} &\$150,000\\\hline \text {Direct labor } &450,000\\\hline \text { Overhead (includes \( \$ 2 \) per unit variable } &\\\text {overhead) } &\underline{240,000}&\underline{840,000}\\ \hline \text { Gross profit } &&\$460,000\\ \hline\text { Selling expenses: } &\\\hline \text {Sales commissions (all variable) } &60,000\\\hline \text { Rent (all fixed) } &40,000\\ \hline\text {Insurance (all fixed) } &35,000\\\hline \text {General and administrative expenses: } &\\ \hline \text { Salaries (all fixed). } &72,000\\\hline \text {Rent (all fixed) } &54,000\\\hline \text {Depreciation (all fixed) } &\underline{31,000}&\underline{292,000}\\\hline \text { Net income from operations } &&\underline{\$168,000}\\ \hline\end{array}$
Prepare a flexible budget for Whidbey Co. that shows a detailed budget for its actual sales volume of 42,000 units. Use the contribution margin format.

Recognize the importance of collaboration, cooperation, and trust in enhancing supply chain performance.

Understand the bullwhip effect and its relation to coordination issues within supply chains.

Identify the different forms of collaboration in supply chain practices.

Identify the basic parts of a microscope and their functions.

---

Definitions:

Interest Receivable

The amount of interest income that has been earned but not yet received in cash.

Fixed Asset

A long-term tangible piece of property or equipment that a business uses in its operations to generate income.

Balance Sheet

A financial report that outlines a corporation's assets, liabilities, and owner's equity at a particular moment.

Interest Receivable

The amount of interest that has been earned but not yet received in cash.