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Budgeting Process and Flexible Budgeting : A service company prepared a flexible budget for its annual operating expenses based on three activity levels: 80%, 100%,

Budgeting Process and Flexible Budgeting: A service company prepared a flexible budget for its annual operating expenses based on three activity levels: 80%, 100%, and 120% of expected service volume. The company's fixed operating expenses are $50,000, and variable operating expenses are $20 per service unit. Calculate the total operating expenses for each activity level and discuss the advantages of using a flexible budget for performance evaluation and decision-making.

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