Fill in the Blanks to Complete the Flexible Budget for Davidson

Essay

Fill in the blanks to complete the flexible budget for Davidson Company. $\begin{array} { l }&\text { Budget Formula perUnit} & &\text { Various Levels of Output}&\$25,000 \\\text { Units }&\_\_\_&3,000&3,500&4,000\\\text { Sales }&\$25\\\text { Variable costs: }\\\text { Manufacturing }&\$8&\_\_\_&\_\_\_&\_\_\_\\\text { Administrative }&&\_\_\_&\$10,500&\_\_\_\\\text { Fixed costs: }\\\text { Manufacturing }&\_\_\_&\_\_\_\\\text { Administrative }&\$12,500&\_\_\_&\_\_\_\\\text { Operating income / (loss) }&\_\_\_&\_\_\_&\_\_\_\\\end{array}$ Answer:
Various Levels of Output
$\begin{array}{llll}\text { Units } & 3,000 & 3,500 & 4,000 \\\text { Sales } & \$ 75,000 & \$ 87,500 & \$ 100,000 \\\text { Variable costs: } & & & \\\text { Manufacturing } & 24,000 & 25,000 & 32,000 \\\text { Administrative } & \mathbf{9 , 0 0 0} & 10,500 & 12,000\\\text { Fixed costs: }\\\text { Manufacturing } & 25,000 & 25,000 & 25,000 \\\text { Administrative } & 12,500 & 12,500 & 12,500\\\text { Operatingincome / (loss) }&\$4,500&\$11,500&\$18,500\end{array}$