The chief operating officer expects the company will provide 40,000 hours of service to clients. However, the vice president for marketing argues the actual number of hours may range from 36,000 to 44,000 hours. Using the following assumptions, complete the master budget for 40,000 hours and the flexible budgets for 36,000 and 44,000 hours.

Baker charges its customers $60 per hour.

Baker's standard variable cost is $32.50 per hour.

Standard fixed cost is $750,000.

The chief operating officer expects the company will provide 40,000 hours of service to clients. However, the vice president for marketing argues the actual number of hours may range from 36,000 to 44,000 hours. Using the following assumptions, complete the master budget for 40,000 hours and the flexible budgets for 36,000 and 44,000 hours. Baker charges its customers $60 per hour. Baker's standard variable cost is $32.50 per hour. Standard fixed cost is $750,000. 36,000 Hours 40,000 Hours 44,000 Hours Flexible Flexible Static Budget Budget Budget Sales Variable Costs Contribution margin Fixed Costs Net income