Question - Talbot Manufacturing
Talbot Manufacturing produces exercise mats and sells the mats to customers around the country. The expenses below are based on producing 25,000 mats.
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Variable expenses:
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Materials
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50,000
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Shipping and handling
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8,250
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Toll-free phone
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2,750
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Credit card fees
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5,500
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Miscellaneous items
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11,000
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Total variable expenses
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77,500
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Fixed expenses
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TV commercial
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45,000
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Actors and models
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5,000
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Studio rental
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15,000
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Total fixed expenses
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65,000
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Total expenses
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142,500
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Prepare a flexible budget if the actual number of mats sold were 25,379.