Derive Amounts for Profit Variance Analysis: Orange Taxi Company operates a limousine and taxicab service. They want
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Derive Amounts for Profit Variance Analysis: Orange Taxi Company operates a limousine and taxicab service. They want to: compare this month's results with last month, which management felt was a typical "base period." The following information is provided:
Required: Compute the flexible budget. sales activity variance, and a profit variance analysis (like the one in Illustration 18-5) in as much detail as possible. (Hint: Use last month as the master budget and this month as the "actual." ) What impact did the changes in number of trips and average revenues (i.e., sales price) have on Orange Taxi's contribution margin?
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