Education Finance $($EduFi$)$ is a startup that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool,

enabling current students to borrow from a school's alumni community. EduFi's revenue model is to take an upfront fee of $40$ basis points $(0\mathrm{.}40\%)$ each from the alumni investor and the

student borrower for every loan originated on its platform. EduFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. EduFi's

budgeted and actual results for the third quarter of $2020$ are presented below.

$($Click the icon to view the data.$)$

Read the requirements.

Requirement

Requirement $1.$ Prepare EduFi's static budget of operating income for the third q

to the nearest whole dollar.$)$

Prepare EduFi's static budget of operating income for the third quarter of

Prepare an analysis of variances for the third quarter of $2020$ ; identify the

sales volume and flexible budget variances for operating income.

Compute the professional labor price and efficiency variances for the third

quarter of $2020.$

What factors would you consider in evaluating the effectiveness of

professional labor in the third quarter of $2020?$

Loans

Revenues

Variable costs:

Data table