The flexible budget at 70,000 unit and 80,000 units level of activity is shown below

The flexible budget at 70,000 unit and 80,000 units level of activity is shown below:70,000 units80,000 units90,000 unitsSales $1,400,000$1,600,000Cost of goods sold840,000960,000Gross profit on sales$560,000$640,000Operating expenses ($90,000 fixed)$370,000$410,000Operating income$190,000$230,000Income taxes (30% of operating income)57,00069,000Net income$133,000$161,000Instructions:Complete the flexible budget at 90,000 unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30% of operating income.Hint