Home Products Company manufactures a complete line of kitchen glassware. The Beverage Division specializes in 12-ounce drinking glasses. Erin Fisher, the superintendent of the Beverage Division, asked the controller to prepare a report of her division's performance in April. The following report was handed to her a few days later:
In discussing the report with the controller, Fisher stated, "Profits have been decreasing in recent months, but this report indicates that our production process is operating efficiently."
Required:
1. Prepare a flexible budget for the Beverage Division using production levels of 45,000 units, 50,000 units, and 55,000 units. If required, round per unit amounts to two decimal places.