Preparing a Flexible BudgetThe flexible budget at the 70000-unit and the 80000-u

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Preparing a Flexible BudgetThe flexible budget at the 70000-unit and the 80000-unit levelsof activity is shown below.70000 Units 80000 Units 90000 UnitsSales $1400000 $1600000 $Cost of goods sold 840000 960000 ________Gross profit on sales $560000 $640000 $Operating expenses($90000 fixed) 370000 410000 _________Operating income $ 190000 $ 230000 $Income taxes(30% of operating income)57000 69000 _________Net income $ 133000 $ 161000 $Complete the flexible budget at the 90000-unit level of activity.Assume that the cost of goods sold and variable operating expensesvary directly with sales and that income taxes remain at 30 percentof operating income.

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