B. A flexible budget Larry's Lawn Service For the Month Ended June 30 Revenue/Cost Formulas Planning Budget Flexible Budget Number of lawns (Q) 500 550 ($750) $ 37,500 Revenue Expenses: Wages and salaries Gasoline and supplies Equipment maintenance Office and shop utilities Office and shop rent Equipment Depreciation Insurance Total expenses Net operating income ($5,000 + $300) $ ($9Q) ($3Q) ($1,000) ($2,000) ($2,500) "($1,000) 20,000 4,500 1,500 1,000 2,000 2,500 1,000 32,500 5,000 $ Questions 6 Prepare a flexible budget if 550 lawns are mowed - in other words, if following the plan, but only the activity level is different (550 vs. 500 lawns), then what is the net operating income? 7 Prepare a flexible budget if 400 lawns are actually mowed