Eventissimo, an event planning firm has created a budget for a large charitable dinner event they are planning, as follows: Revenue (1000 guests @ $95 per ticket).......................... $ 95,000 Expenses: Variable: Food (1000 guests @ $55)........................ $ 55,000 Party gifts (1000 guests @ $7).................. 7,000 Floral Centrepieces (100 tables @ $18)........ 1,800 Chair covers (1000 guests @ $6)................. 6,000 Contribution Margin..................................................... 25,200 Fixed: Event planning fee.............................. 3,000 Room Rental..................................... 2,500 Security........................................... 1,200 Sound System Rental........................... 3,600 Room dcor....................................... 2,100 Door prizes....................................... 800 13,200 Net Profit for charity.......................................... $ 12,000 ===== But in reality, it turns out that due to poor publicity and bad weather on the day of the event, only 750 people attend the event. Actual results follow below, in the middle numeric column of the table. Now answer these : a. What kind of budget is prepared at an activity level different from the original level? (i.e., what do we call this kind of budget?) (3 marks) b. Please prepare a budget assuming 750 attendees, and place it in the first numeric column below. (7 marks) c. Compute the variance for each budget item, showing these in the last numeric column below. Please be sure that each variance is followed by its appropriate letter. (7 marks) Budget @ 750 Variance ACTUAL Revenue $. 71,250 Food 43,500 Party Gifts 5,000 Centrepieces 1,480 Chair Covers 4,920 Contribution Margin 16,350 Event Planning Fee 3,500 Room rental 3,200 Security 1,600 Sound System rental 3,500 Room dcor 1,800 Door prizes 800 Net Profit $1,950 d. List three variances that you think should be investigated