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(10 pts) 4. Hamilton Corporation prepared a budget last period that called for sales of 100,000 units at a price of $40 each. The
(10 pts) 4. Hamilton Corporation prepared a budget last period that called for sales of 100,000 units at a price of $40 each. The production costs per unit were estimated to amount to $25.00 variable and $8.00 fixed. Selling and administrative costs were all fixed at $120,000. During the period, production was exactly equal to the actual sales volume of 95,000 units. The actual selling price was $42 per unit. Actual production variable costs were $27 per unit and actual fixed production costs totaled $780,000. Selling and administrative costs were $100,000. Required: a) Prepare operating statements for the actual output, as well as a static budget and flexible budget. b) Explain what is indicated when comparing the operating statements.
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