Grenada Company Estimates Sales of 15,000 Units for the Upcoming

Essay

Grenada Company estimates sales of 15,000 units for the upcoming period.At this sales volume its budgeted income is as follows:
$\begin{array}{lcc}&\text {Per Unit}&\text {Total}\\\text { Sales } & \$ 60 & \$ 900,000 \\\text { Less variable costs: } & & \\\text { Manufacturing costs } & 30 & 450,000 \\\text { Selling and administrative costs } & \underline{10 }& \underline{ 150,000} \\\text { Contribution margin } & \$ 20 & \$ 300,000 \\\text { Less fixed costs: } & & \\\text { Manufacturing costs } & & 125,000\\\text { Selling and administrative costs } && \underline{ 155,000} \\\text { Net income } && \underline{\$ 20,000}\end{array}$

During the period the company actually produced and sold 18,000 units.
Required:
Prepare a flexible budget based on 18,000 units.