Prepare a columar flexible budget for Vermnont sky tours expenses using air miles as the cost driver at the following activity levels: 32,000 air miles, 35,000 air miles and 38,000 air miles.

VERMONT SKY TOURS Performance Report For the Month of September Formula Flexible Budget (per air mile) Actual (32,000 air miles) Static Budget (35,000 air miles) Variance Passenger revenue .......................... $10.50 $336,000 $367,500 $31,500 U Less: Variable expenses: Fuel ............................................. 1.50 $ 51,000 $ 52,500 $ 1,500 F Aircraft maintenance .................... 2.25 70,500 78,750 8,250 F Flight crew salaries ....................... 1.20 39,300 42,000 2,700 F Selling and administrative ............ 2.40 74,700 84,000 9,300 F Total variable expenses ............. $ 7.35 $235,500 $257,250 $21,750 F Contribution margin ......................... $ 3.15 $100,500 $110,250 9,750 U Per Month Less: Fixed expenses: Depreciation on aircraft ...................... $ 8,700 $ 8,700 $ 8,700 $ 0 Landing fees ..................................... 2,700 3,000 2,700 300 U Supervisory salaries ........................... 27,000 25,800 27,000 1,200 F Selling and administrative .................. 33,000 37,200 33,000 4,200 U Total fixed expenses ....................... $71,400 $ 74,700 $ 71,400 $ 3,300 U Operating income .............................. $ 25,800 $ 38,850 $13,050 U