ist K The Everlasting Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for October (Click the icon to view the performance report in contribution margin format) Read the requirements Data table Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unt is x A C D T 2 The Everlasting Balloon Company Actual vs. Budget Performance Report For the Month Ended October 31 Master 4 Actual Budget Master Budget Variance 5 Sales volume (number of cases sold) 58,500 56,000 Sales revenue $ 215,400s 190.400 7 Less: Variable expenses Contribution margin 114,300 $101,100 s 100,800 20.000 Less: Fixed expenses 73.500 $27.500 $ 72,000 Requirements 1. What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unit? 3. What is the budgeted fixed cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated and (b) due to some other unexpected cause. Prepare a Bexible budget performance report to address these questions, using the actual sales volume of 58,500 units and the budgeted sales volume of 50,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 51,000 to 63.500 units 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than 17.000 10 Operating Income c. d. What could account for the flexible budget variance for sales revenue? What is the volume variance for fixed expenses? Why is it this amount?