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Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ 3.40. Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.80 . Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 69,000 Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 55,500 units and the budgeted sales volume of 53,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 48,000 to 65,500 units. Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest whole dollar. For accounts with a 0 balance, make sure to enter "O" in the appropriate column. Label each variance as favorable (F) or unfavorable (U).) The Creative Balloon Company Actual vs. Budget Performance Report For the Month Ended December 31 Master Master Budget Variance Actual Budget 55,500 53,000 Sales volume (number of cases sold) Sales revenue $ 203,200 $ 105,400 180,200 95,400 Less: Variable expenses Contribution margin $ 97,800 $ 70,400 84,800 69,000 Less: Fixed expenses Operating income $ 27,400 $ 15,800 The Creative Balloon Company Flexible Budget Performance Report For the Month Ended December 31 Flexible Master Budget Flexible Volume Master Budget Variance Actual Variance Budget Variance Budget 62000 Sales volume 55500 203200 Sales revenue 248000 105400 148800 Less: Variable expenses Contribution margin 97800 99200 70000 20 eu 020 20 70400 Less: Fixed expenses 27400 29200 Operating income

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