Budgeting at Microsoft

• Values:
  • Budgeted Revenue: $10,000,000
  • Actual Revenue: $9,500,000
  • Budgeted Expenses: $7,000,000
  • Actual Expenses: $7,200,000
• Requirements:

1. Prepare a flexible budget variance analysis.
2. Calculate the revenue and expense variances.
3. Analyze the variances and their implications on profitability.
4. Recommend corrective actions based on the variance analysis.