The Precious Balloon Comparty produces party balloons that are sold in multipack cames. Following is the company's performance report in contribution margin format for August (Click the foon to view the performance report in contribution margin format) Read the requirements CH Requirement 1. What is the budgeted sales prio per unit? The budgeted sales price per unit is oduces pa Formancer on margin format for August ? B ? D 1 2 The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 3 ted sales Master Budget Variance Master Budget Actual S Sales volume (number of cases 5 sold) 6 Sales revenue 7 Less: Variable expenses 8 Contribution margin 9 Less: Fixed expenses 60,500 55,000 $ 206,500 $ 181,500 76,000 66,000 $ 130,500 $ 70,500 115,500 69,000 Print Done -oduces pa formance 1 jon margin format for August 2 The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 3 Master Budget Variance Master Budget 4 Actual eted sales Sales volume (number of cases 5 sold) 6 Sales revenue is 7 Less: Variable expenses 8 Contribution margin 60,500 55,000 S 206,500 $ 181,500 76,000 66,000 $ 130,500 $ 115,500 70,500 69,000 $ 60,000 $ 46,500 9 Less: Fixed expenses 10 Operating income Requirements ? mpany prmat for August the pe the bud 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: 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 per un a. b. www ompany ew the pe prmat for August s the bud 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: 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? d. What is the volume variance for fixed expenses? Why is it this amount? te per un a. c. Print Done