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 July (Click the icon to view the performance report in contribution margin format) Read the requirements. Red Data Table w Requirements Th A B C D 1 2. The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended July 31 3 Master Budget Variance Master Budget Actual 4 Sales volume (number of cases 5 sold) 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 59.000 units and the budgeted sales volume of 56,000 units. Use the original budget assumptions for sales price variable cost per unit and fixed costs, assuming the relevant range stretches from 51 000 to 64.000 units 6. Using the flexible budget performance report you prepared for Requirement 5 answer the following questions 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 than volume? What could account for the flexible budget variance for sales revenue ? 59.000 56,000 6 Sales revenue $ 202,800 5 184,800 93.500 84.000 a. 7 Less: Variable expenses 8 Contribution margin $ 109 3003 Entd 100.800 9 Less: Fixed expenses 93.200 72.000 10 Operating income $ 36. 100$ 28.800 HE Type here to search I 3:10 AM he Precious Balloon Company produces party balloons that are sold in multi-pack cases. Followin Click the icon to view the performance report in contribution margin format.) Read the requirements. Red Data Table Th A B D 1 2 The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended July 31 3 Master Budget Variance Actual Master Budget 4. Sales volume (number of cases 5 sold) 59,000 56,000 6 Sales revenue $ 202.800 $ 184.800 7 Less: Variable expenses 93.500 84.000 Ente 8 Contribution margin 9 Less: Fixed expenses $ 109,300 $ 100.800 73.200 72.000 10 Operating income 36,100 $ 28.800 Tune hara to UI 08, Question 7 > Score: 2.16 of 4 points e company's performance report in contribution margin format for July: Requirements 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 59.000 units and the budgeted sales volume of 56,000 units. Use the original budget assumptions for sales price variable cost per unit and fixed costs, assuming the relevant range stretches from 51.000 to 64 000 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions 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 than volume? What could account for the flexible budget variance for sales revenue? a