Student Finance (StuFi) 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. Stuff's revenue model is to take an upfront fee of 40 basis points (0.40%) each from the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. (Click the icon to view the data.) Read the requirements Actual Results Static Budget 8,200 145,000 10,250 $162,000 $ New loans originated Average amount of loan Variable costs per loan Professional labor Credit verification Federal documentation fees 475 (9.5 hrs at $50 per hour) 100 125 360 (8 hrs at $45 per hour) 100 120 50 800,000 1,300,000 Courier services Administrative costs (fixed) Technology costs (fixed) $ 945.000 1,415,000 $ 1. Prepare StuFi's static budget of operating income for the third quarter of 2017 2. Prepare an analysis of variances for the third quarter of 2017, 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 2017 4. What factors would you consider in evaluating the effectiveness of professional labor in the third quarter of 2017? Requirement 1. Prepare Stufi's static budget of operating income for the third quarter of 2017. (Do not round Intermediary calculations. Round the amount you enter into the input cell to the nearest whole dollar) Student Finance Static Budget 2017 Loans Revenues Variable costs: Professional labor Credit verification Federal doc fees Courier services Total variable costs Contribution margin Fixed administrative costs Fixed technology costs Operating income