Jake Co. has prepared the following fixed budget for the year, assuming production and sales of 30,000 units. This level of production represents 80% of capacity.
Jake Co. Fixed Budget for Year Ending December 31

\text { Jake Co. Fixed Budget for Year Ending December } 31

\begin{array}{|l|c|c|}\hline \text { Sales } & & \$ 1,500,000 \\\hline \text { Cost of goods sold: } & & \\\hline \text { Direct materials } & \$ 540,000 & \\\hline \text { Direct labor } & 300,000 & \\\hline \text { Indirect materials (variable) } & 15,000 & \\\hline \text { Indirect labor (variable) } & 21,000 & \\\hline \text { Depreciation } & 180,000 & \\\hline \text { Salaries } & 90,000 & \\\hline \text { Utilities ( } 80 \% \text { fixed) } & 54,000 & \\\hline \text { Maintenance ( } 40 \% \text { variable) } & 33,000 & 1,233,000 \\\hline \text { Gross profit } & & \$ 267,000 \\\hline\end{array}

\begin{array} { l | l | l } \hline \text { Operating expenses: } & & \\\hline \text { Commistions } \ldots \ldots \ldots \ldots \ldots \ldots \ldots & \$ 45,000 & \\\hline \text { Advertising (fixed) } \ldots \ldots \ldots \ldots \ldots \ldots & 60,000 & \\\hline \text { Wages (variable) } \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 15,000 & \\\hline \text { Rent } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 30,000 & \\\hline \text { Total operating Expentes } \ldots \ldots \ldots \ldots & & 150,000 \\\hline \text { Income from operations } \ldots \ldots \ldots \ldots \ldots \ldots & & \underline { \underline { \$ 117,000 } } \\\hline & &\end{array}

Calculate the following flexible budget amounts at the indicated levels of capacity:

\begin{array} { l | l | l | l } & \begin{array} { l } \text { Operations at } \\60 \% \text { of Capacity }\end{array} & & \begin{array} { l } \text { Operations at } \\75 \% \text { of Capacity }\end{array} \\\hline \text { Sales } & & & \\\hline \text { Total variable costs } & & & \\\hline \text { Total fixed costs } & & & \\\hline \text { Income from operations } & & &\end{array}

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