After Hank because familiar with the flexible budget report, he began to analyze the numbers. Hank feels that sales can be increased if Jennings Outdoor Company would increase sales commissions to $33.00 per unit. This would allow them to reduce advertising expense to $8.00 per unit. Hank thinks that these changes will motivate the sales staff to sell at least 5,600 units. He is allowed to try his plan in December and had the following results.

Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020
Sales in units		5,600
Variable expenses
Sales commissions		$178,400
Advertising expense		42,600
Travel expense		266,900
Demonstration models given out		107,500
Total variable		595,400
Fixed expenses
Rent		7,400
Sales salaries		60,400
Office salaries		40,100
Depreciation vans (sales staff)		2,700
Total fixed		110,600
Total expenses		$706,000

Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. (Round per unit answers to 2 decimal places, e.g. 15.25.)

Jennings Outdoor Company Winter Sports Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable Per Unit Budget Actual nor Unfavorable $ Do you think the new plan is valid? Explain. It appears that the new plan is a as favorable total variance is by $ than in November Jennings Outdoor Company Winter Sports Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable Per Unit Budget Actual nor Unfavorable $ Do you think the new plan is valid? Explain. It appears that the new plan is a as favorable total variance is by $ than in November