The Precious Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format for August: (Click the icon to view the performance report in contribution margin format.) Read the requirements Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is roduces pa Formance r 1 2 3 B The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 D Master Master Budget ted sales 4 Actual Budget Variance Sales volume (number of cases S 5 sold) 60,500 55,000 6 Sales revenue $ 206,500 $ 181,500 7 Less: Variable expenses 76,000 66,000 8 Contribution margin 9 Less: Fixed expenses. $ 130,500 $ 115,500 70,500 Print Done 69,000 on margin format for August roduces pa 1 formance r 2 3 The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 Master Master Budget 4 Actual Budget Variance Sales volume (number of cases eted sales 5 sold) 60,500 55,000 is 6 Sales revenue $ 206,500 $ 181,500 7 Less: Variable expenses 8 Contribution margin 76,000 66,000 $ 130,500 $ 115,500 70,500 69,000 9 Less: Fixed expenses $ 10 Operating income 60,000 $ 46,500 ion margin format for August: mpany Requirements w the p the bud per un 1. What is the budgeted sales price per unit? 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 60,500 units and the budgeted sales volume of 55,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant rangerstretches from 50,000 to 75,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other ormat for August Company new the pe s the bud ce per un 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 60,500 units and the budgeted sales volume of 55,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 50,000 to 75,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. b. C. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? How much of the master budget variance for variable expenses is due to some cause other than volume? 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 ormat for August