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Exercise 15-3A (Algo) Using a flexible budget to accommodate market uncertainty LO 15-2 According to its original plan, Benson Consulting Services Company plans to charge

Exercise 15-3A (Algo) Using a flexible budget to accommodate market uncertainty LO 15-2 According to its original plan, Benson Consulting Services Company plans to charge its customers for service at $133 per hour. The company president expects consulting services provided to customers to reach 49,000 hours at that rate. The marketing manager, however, argues that actual results may range from 43,000 hours to 55,000 hours because of market uncertainty. Benson's standard variable cost is $41 per hour, and its standard fixed cost is $1,460,000. Required Develop flexible budgets based on the assumptions of service levels at 43,000 hours, 49,000 hours, and 55,000 hours. Flexible Budget Flexible Budget Flexible Budget 49,000 Hours 43,000 Hours 55,000 Hours Sales Variable costs Contribution margin Fixed costs Net income 2$ 24 0. $
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Exercise 15-3A (Algo) Using a flexible budget to accommodate market uncertainty LO 15-2 According to its original plan, Benson Consulting Services Company plans to charge its customers for service at $133 per hour. The company president expects consulting services provided to customers to reach 49,000 hours at that rate. The marketing manager, however, argues that actual results may range from 43,000 hours to 55,000 hours because of market uncertainty. Benson's standard variable cost is $41 per hour, and its standard fixed cost is $1,460,000 Required Develop flexible budgets based on the assumptions of service levels at 43,000 hours, 49,000 hours, and 55,000 hours. Flexible Budget Flexible Budget Flexible Budget 43,000 Hours 49,000 Hours 55.000 Hours Sales Variable costs Contribution margin Found costs Net Income 0 0 0 $ S 0 $ 0

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