Graduate Finance (GradFi) 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. GradFi'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. GradFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. GradFi's budgeted and actual results for the third quarter of 2020 are presented below. BB (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare GradFi's static budget of operating income for the third quarter of 2020. (Do not round intermediary calculations. Round the amount you enter into the input field to the nearest whole dollar.) Graduate Finance Requirement Static Budget 2020 1. Prepare GradFi's static budget of operating income for the third quarter of 2020. Loans 2.Prepare an analysis of variances for the third quarter of 2020; identify the sales volume and flexible budget variances for operating income. 3. Compute the professional labor price and efficiency variances for the third quarter of 2020. 4. What factors would you consider in evaluating the effectiveness of professional labor in the third quarter of 2020? Revenues Variable costs: Professional labor Credit verification Federal doc fees Courier services Data table Total variable costs Contribution margin Static Budget Actual Results Fixed administrative costs New loans originated 7,800 9,870 Fixed technology costs Average amount of loan $ 141,000 $163,000 Operating income T Variable costs per loan: Professional labor $ 572 (13 hrs at $44 per hour) $ 621 (13.5 hrs at $46 per hour) Credit verification $ 95 $ 95 Federal documentation fees $ 125 $ 130 Courier services $ 55 $ 56 Administrative costs (fixed) $ 740,000 $ 877,000 $ 1,400,000 $ 1,512,000