New Rock, Inc. sells video games it has purchased from a local distributor. The following static budget is based on sales of 8,000 games. However, New Rock only sold 7,800 games during the year. Fixed costs are 30% of total operating expenses

Sales$512,000Cost of goods sold (variable)230,000Gross margin282,000Operating expenses220,000Net income$ 62,000

Prepare a flexible budget.

Solution:

                                           New Rock, Inc.

                                           Flexible Budget

Sales Revenue (7,800 x $64)                                           $499,200

Cost of Goods Sold (7,800 x $28.75)                               224,250

Gross Profit                                                                         274,950

Variable operating expenses(7,800 x 19.25)                   150,150

Fixed operating expenses ($220,000 x 0.30)                  66,000

Net Income                                                                        $58,800

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.