The Lively Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format for May: (Click the icon to view the performance report in contribution margin format.) Read the requirements. sure to enter in a v. A variance or zero is considered lavorare.) The Lively Balloon Company Flexible Budget Performance Report For the Month Ended May 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance 54,000 0 F 54,000 2,000 F 52,000 2,000 F Sales volume Sales revenue $ 178,200 8200 F 17000 144200 F $161,200 152400 F 72,800 Less: Variable expenses 85,300 U U U Contribution margin 92,900 F F 88,400 F Less: Fixed expenses 63,900 63,000 U $ $ 29,000 25,400 F F Operating income A 1 2 Requirements B c D 1. What is the budgeted sales price per unit? The Lively Balloon Company Actual vs. Budget Performance Report For the Month Ended May 31 4 Actual Master Master Budget Budget Variance Sales volume (number of cases sold) 54,000 $2,000 Sales revenue $178,200 $ 161.200 7 Less: Variable expenses 65.300 72.800 Contribution margin $92.0005 68.400 Less: Fixed expenses 10 Operating income 63,000 $20,000 $ 63,000 25.400 Question 10 Print Done 29.000 Operating income Help me solve this Video Get more help- 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 flexible budget performance report to address these questions, using the actual sales volume of 54,000 units and the budgeted sales volume of 52.000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 64,000 units 6. Using the Sexble budget performance report you prepared for Requirement 5, answer the following a. How much of the master budget variance (calculated in Requirement 4) for operating income le 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 What could account for the flexible budget variance for sales revenue? d. What is the volume variance for fixed expenses? Why is it this amount? Print Done Clear all Check