The correct final answers are provided below, please show your work on how to get the answers. Thanks!

7. $20,620

8. $96 F

9. Fixed cost allocated to fewer units

10. $8,000 U

11. 0.78

12. Purchasing manager

Use the following information to answer questions 7 through 9 Lemon Leaf Treats is a popular downtown gelato shop. Although the gelato is sold in a cone or bowl, the owner measures activity in terms of the total number of liters of gelato sold. The owner has provided the following information about its operations for the month of November Planning Actual Variance 5000 S75,000 33,000 7,500 10,000 2.500 53,000 Liters Sold Revenue Gelato Other variable costs (wages and utilities) Rent Other fixed cost (insurance and depreciation Total cost Operating income 4800 S72,000 31,584 6,960 10,000 2.500 51044 $3,000 U 1,416 F 540 F 0 F 0 F 1956 E Average cost per unit S10 60 S1063 The owner has been working on controlling costs, so he is pleased that the cost variances are all favorable and that total cost has decreased. However, he is quite confused that in spite of all his hard work, average cost per unit has increased. He has asked you to review the report. Compute the amount of profit that will appear on the flexible budget for the month. 8. Compute the amount by which profit changed simply because the cost of gelato changed (in other words, compute the gelato spending variance). Use the standard F or"U notation to indicate the direction of change