Education Finance (EduFi) is a startup that airns to use the power of social corrirunities to transform the student loan market. Il 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 60 basis points (0.60%) 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 2017 are presented below. BE: (Click the icon to view the data.) Read the requirements Requirement 2. Prepare an analysis of variances for the third quarter of 2017: identify the sales volume and flexible budget variances for operating income. (For variances with a SO balance, make sure to enter "O' in the appropriate field. If the variance is zero, do not select a label. Do not round intermediary calculations. Round the amount entered into the inpul cell to the nearest whole dollar.) Flexible Budget Variances 6 Data Table Actual Results 11,640 Flexible Budget Loans Revenues Variable costs: Professional labor Credit verification Federal doc fees Static Budget 8,600 148,000 Actual Results 11,640 $170,000 $ Courier services New loans originated Average amount of loan Variable costs per loan Professional labor Credit verification Federal documentation fees Courier services Adrrinistrative costs (fixed) Technology costs (fixed) Total variable costs Contribution margin Fixed administrative costs Fixed technology costs 324 (9 hrs at $36 per hour) 110 145 85 780,000 1,100,000 418 (11 hrs at $38 per hour) 110 150 86 896,000 1,206,000 $ $ Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer! %E7-33 (similar to) Question Help 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 60 basis points (0.60%) 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 2017 are presented below. ::: (Click the Icon to view the data.) Read the requirements. Requirement 1. Prepare EduFi's static budget of operating income for the third quarter of 2017. (Do not round intermediary calculations. Round the amount you enter into the input cell to the nearest whole dollar.) i Data Table Education Finance Static Budget 2017 Loans Revenues $ Variable costs: Professional labor 8,600 15,273,600 Actual Results Static Budget 8,600 148,000 11,840 $170,000 $ Credit verification Federal doc fees $ New loans originated Average amount of loan Variable costs per loan Professional labor Credit verification Federal documentation fees Courier Services Administrative costs (fixed) Technology costs (fixed) 2,786,400 946,000 1,247,000 731,000 5,710,400 9,563,200 760.000 1,100,000 324 (9 hrs at $36 per hour) 110 145 418 (11 hrs at S38 per hour) 110 150 Courier Services $ $ Total variable costs Contribution margin Fixed administrative costs 85 $ $ 760,000 1,100,000 $ $ 896,000 1.206,000 Fixed technology costs $ 7.703.200 Operating income Print Done Requirement 2. Prepare an analysis of variances for the th sure to enter "O" in the appropriate field. If the Choose from any list or enter any number in the input fields and then click Check
