I need help understanding how to start answering this question with all of the given information. I am unsure of what a 1st quarter static budget is, much less how to prepare one.

State Street Pub-State Street Pub, a large pub located near State College, serves as a gathering place for the university's more social scholars. Proprietor Bill Branch sells beer on draft and all brands of bottled beer. Bill decided to sell hamburgers during selected hours. His reasons were twofold: first, burgers would attract daytime customers, and second, he competes with other local bars which provide more extensive menus. Bill decided to sell each hamburger plate for $4.50. The incremental monthly cost analysis for the addition of hamburgers is as follows (information continues on next page): Variable costs per hamburger Food costs: rolls, ground beef, tomatoes, cheese, lettuce French fries, condiments Supplies: paper plates, napkins, etc. $1.90 $0.20 Fixed costs per month Wages of part-time cooks Equipment lease payments Other: electricity, insurance, etc. $1,200 $400 $200 At the end of the 1st quarter, Bill evaluates his decision to offer hamburgers at the State Street Pub. Bill is thrilled to find that hamburger sales are higher than he anticipated. He sold 7,500 hamburger plates in the 3-month period and the response from patrons has been excellent. However, he is disappointed to see that his expenses are higher than expected and profit is less than he hoped. (Question continue on the next page) Actual Results 1st Quarter Sales Food Supplies Wages Leases Other Profit $33,750 19,000 1,600 3,600 1,200 800 $ 7,550 Flex Budget for 7,500 hamburgers Actual for 7,500 hamburgers Ground Beef Buns Cheese Tomatoes Lettuce Condiments French Fries 2,500lb @ $3.50lb 7,500 @.20 per bun 375lb @ $4.00 lb. 500lb @ $2.00 lb. 200 lb. @ $1.00 lb. 200 jars @ $2.00 1,500 lb. @.60 lb. $8,750 1,500 1,500 1,000 200 400 900 3,000 @ $4.00 8,000 @.20 per bun 450lb @ $3.50 lb. 500lb @ $2.00 lb. 200 lb. @ $1.00 lb. 250 jars @ $2.50 2,000 lb. @ 1.00 lb. $12,000 1,600 1,575 1,000 200 625 2,000 1. Prepare a 1st quarter static budget for the hamburger endeavor (this is the budget before Bill starts to sell hamburgers) and a flexible budget. Bill estimates that he will sell 60 hamburger plates per day. The business is open 360 days per year. Actual Results 7,500 Flex. Variance Flexible Volume Budget Variance 7,500 Static Budget 5,400 # hamburger plates Revenue Variable Costs Food Supplies Contribution Margin Fixed Costs: Wages Leases Other INCOME