Calico Careers provides a resume review service for MiM and MBA students.Customers upload their resume to an online portal where it is reviewed by an experienced recruiter who then provides feedback and suggestions. The recruiters are hired on a contract basis and paid per resume reviewed.

For the year ended 2022, Calico Careers prepared a budget based on the following assumptions:

• Price per review $150
• Consultant time per resume review 1 hour
• Consultant fee $50 per hour
• Online portal cost $20 per review
• Marketing cost $37,500
• Other costs $22,000
• Expected number of resume reviews 1,200

1. What is the budgeted profit?
2. What is the budgeted contribution margin per review?

Twelve months later, the business noted the following:

• Price per review $160
• Actual review hours 1,300
• Actual total cost of review hours $67,600
• Actual total portal cost $24,000
• Actual marketing cost $34,000
• Actual other costs $22,500
• Actual profit $51,900
• Actual number of resume reviews 1,250

1. Complete the following reconciliation (fill in the blanks and enter the relevant amounts)

Budgeted profit
+/- Variance due to change in _________________________________________
= Flexible budget profit
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
+/- Variance due to change in _________________________________________
Actual profit

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