According to its original plan, Perez Consulting Services Company plans to charge its customers for service at $133 per hour in 2018. The company president expects consulting services provided to customers to reach 53,000 hours at that rate. The marketing manager, however, argues that actual results may range from 46,000 hours to 60,000 hours because of market uncertainty. Perez's standard variable cost is $45 per hour, and its standard fixed cost is $1,440,000.

Required

Develop flexible budgets based on the assumptions of service levels at 46,000 hours, 53,000 hours, and 60,000 hours.