1.Prepare flexible budget, given the following information.The Flint Firebirds (Ontario Hockey League) planon playing20 home games.However, the team does well,and alsoplays 5 playoff games.

Averagerevenue per customer (ticket priceplus concessions net)is$12. Average attendance is 2,000 fans/game.

Costs are:

Arena Laborand concession costs$2,000 / game

Arenarental$10,000 / year + $1,000/game.

Players andmanagement$400,000 / year.

Prepare the flexible budget.

Static BudgetFlexible budget

Number of games 2025

Revenue 480,000

Arena laborand concessions 40,000

Arena rental 30,000

Players andmgmt..400,000

Total expenses 470,000

Net income (loss)10,000