Budgeting and Variance Analysis at Apple Inc.

Requirements:

• Develop a flexible budget for Apple's iPhone division, considering three production levels: 1 million, 1.5 million, and 2 million units.
• Calculate the sales volume variance for Apple's iPhone division based on actual sales of 1.2 million units, budgeted sales of 1.5 million units, and a budgeted contribution margin per unit of $500.
• Analyze the reasons for the sales volume variance and recommend actions to improve performance in Apple's iPhone division.
• Prepare a variance report comparing actual and flexible budgeted results for Apple's iPhone division.