Question

A company sells a product for $3. Cost of goods sold is budgeted at 60% of sales. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted COGS will be $ . At a sales volume of 60 units, budgeted COGS will be $

Answer 1

Answer:

$90 and $108

Explanation:

The computation of the costs of goods sold is shown below:

At Sales volume of 50 units:

= Selling price per unit × number of units × given percentage

= $3 × 50 units × 60%

= $90

At Sales volume of 60 units:

= Selling price per unit × number of units × given percentage

= $3 × 60 units × 60%

= $108

Simply we multiplied the selling price per unit with the number of units and the given percentage so that the correct amount can come