A shop is open 24 hours, with three shifts (same # of people per shift). Shift #1: 6:00 a.m., Shift #2: 2:00 p.m., shift #3: 10:00 p.m. At the end of each month, the owner meets with the manager to discuss how things went that month to prepare the budget for the upcoming month. The basic budget that is used each month is as follows:

Number of shifts	90
Number of customers	18,000
X items sold	22,500
Y items sold	6,300
X revenue	132,750
Y revenue	22,050
X cost	28,800
Y cost	12,600
Labour cost	68,400
Utilities cost	24,300
Depreciation on equipment	3,000
Rent	1,800

At the end of march, meeting because -the results for march werent goodnet income was only $13,084. Much of the discussion centered around the three shifts that seemed to be contributing the least to the overall success of the firm. These are the last shift (from 10:00 p.m. to 6:00 a.m.) beginning on Sunday night through early Wednesday morning. The manager suggested that they close the shop for these three shifts. Both agreed that average customers per shift would likely increase as a result, perhaps to as much as 240 customers per shift. It was agreed to close those shifts for the month of April and re-evaluate afterwards/ They prepared the budget based on the reduced number of shifts and the expected increase in customers per shift:

At the end of April, the owner prepared the following static budget analysis:

item	budget	actual	variance
Number of shifts	78	78	0
Number of customers	18720	17738	982
Cups of X sold	23400	24412	-1012
Y items sold	6552	9868	-3316
X revenue	138060	133146	4914
Y revenue	22932	40454	-17522
X cost	29952	28918	1034
Y cost	13760	23188	=9428
Labour cost	59280	59280
Utilities cost	21060	20280	780
Depreciation on equipment	3000	3000
Rent	1800	2000	-200

assume that the costs included in the budget are the only costs the firm incurs. Number of X and number of Y items sold are budgeted per customer. Utilities cost is budgeted per shift. Depreciation and rent are fixed. Concerning (yes) is based on whether anything over 5% of the budget (is concerning or not).

**With detailed calculations to demonstrate your work answer the following:

1. Prepare a flexible budget analysis for the company! for the month of April. Do not forget to include activity levels.
2. Compute expected profit according to the original budget (before the experiment).
3. Compute expected profit according to the April 1 budget.
4. Compute expected profit according to the flexible budget.
5. Compute actual profit.