Gundy Company expects to produce 1,272,000 units of Product XX in 2020. Monthly production is expected to range from 85,000 to 129,000 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 22,000 unit increments

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?