1. Raffel jeans management decides that the 16,000 units is most likely
Project 1 : Following is a monthly given income statement for Raffel jeans, a small newly
started fashion jeans manufacturer business. The pro forma analysis was prepared at the
beginning of the month and considered three alternative sales levels. The company has no
variable marketing costs. Income statement line item Budgeted amount per unit
Pre-forma analysis forAlternative output levels10,000 units 20,000 units 30,000
unitsRevenue $35 $350,000 $700,000 $1,050,000Variable
costs: Material Labor Overhead Total 13 8 5 26 130,000 80,000 50,000 260000
260,000 160,000 100,000 520,000
3,90,000 240,000 150,000 780,000Contributing margin: $10 100,000
200,000 300,000Fixed costs: Manufacturing Overhead Marketing cost Total
fixed cost Operating income 100,000 50,000 150,000 ($50,000)
100,000 50,000 150,000 $50,000 100,000 50,000 150,000 $150,000 Since by
definition, fixed costs are not expected to change as volume of output changes within the
relevant range, fixed costs remain the same at all three projected levels of output. Revenue
and variable costs vary with output in a linear fashion. Hence, when output increases 100%
from10,000 units to 20,000 units, revenue, each line-item for variable costs, and
contribution marginal increase 100% Raffel jeans management decides that the 16,000
units is most likely output volume, and sets the static budget based on this sale and
production level Using the above given data, prepare and compute in an Excel sheet using
different tabs of the sheet for each one of the following calculations;Static budget for 10,000
unitsActual result for 16,000 unitsOperating incomeStatic budget variancePrepare flexible
budget for end on the monthVariation in operating incomeActual resultsFlexible budget
varianceYou must attach the screen shot of the task performed and hand out a print out to
the assessor.Click here to request for this assignment help#Raffel #jeans #management
#decides #units