1. Bubble Systems manufactures rugged handheld bubble blowers for use in adverse working environments.
Bubble Systems tries to maintain inventory at 40% of the following month's expected unit sales. prepared by the sales manager:
Bubble Systems began the year with 8,000 units in stock, based on the following unit sales projections prepared by the sales manager:
| January |
20,000 |
| February |
25,000 |
| March |
18,000 |
| April |
22,000 |
Prepare a schedule of planned unit production of handheld bubble blowers for January through March.
2. Stobla Manufacturing produces bounded journals and sells them to customers around the country. The expenses below are based on producing 25,000 journals.
|
Variable expenses:
|
|
Materials
|
50,000
|
|
Shipping and handling
|
8,250
|
|
Toll-free phone
|
2,750
|
|
Credit card fees
|
5,500
|
|
Miscellaneous items
|
11,000
|
|
Total variable expenses
|
77,500
|
|
|
Fixed expenses
|
|
|
TV commercial
|
45,000
|
|
Actors and models
|
5,000
|
|
Studio rental
|
15,000
|
|
Total fixed expenses
|
65,000
|
|
|
Total expenses
|
142,500
|
Prepare a flexible budget if the actual number of journals sold were 25,379.