Portobello Company Prepared the Following Static Budget for the Coming

Essay

Portobello Company prepared the following static budget for the coming month:
$\begin{array}{|l|l|r|}\hline \text { Static Budget } & & \\\hline \text { Units/volume } & & 5,000 \\\hline & \text { Per Unit } & \\\hline \text { Sales revenue } & \$ 3.00 & \$ 15,000 \\\hline \text { Variable expenses } & \$ 1.80 & 9,000 \\\hline \text { Contribution margin } & & 6,000 \\\hline \text { Fixed expenses } & & 5,000 \\\hline \text { Operating income/(1oss) } & & \$ 1,000 \\\hline\end{array}$
Using the format below, please prepare a flexible budget including data at volumes of 4,000 and 6,000 units.
$\begin{array}{|l|l|r|r|r|}\hline \text { Flexible Budget } & & & \\\hline \text { Units/volume } & & 4,000 & 5,000 & 6,000 \\\hline & \text { Per Unit } \\\hline \text { Sales revenue } & \$ 3.00 \\\hline \text { Variable expenses } & \$ 1.80 \\\hline \text { Contribution margin } & \\\hline \text { rixed expenses } & \\\hline \text { Operating income/(loss) } &\\\hline\end{array}$