Crowdly
Add to Chrome
Answer questions 12 to 14 using the information below: Current information r...
✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
Answer questions 12 to 14 using the information below:
Current information relates to the third quarter. As part of its budget process, Indian Restaurant Bishan (BIR) has developed the following static budget for the third quarter with a plan to serve 10,000 meals. BIR is in the process of preparing the flexible budget and understanding the results.
|
Current results
|
|
Budget Flexible
|
|
Static budget
|
Sales (in units)
|
11,000
|
|
|
|
10,000
|
Turnover
|
$238,000
|
|
…………..$
|
|
$230,000
|
Variable costs
|
$150,000
|
|
…………..$
|
|
$180,000
|
Variable cost margin
|
$88,000
|
|
…………..$
|
|
$50,000
|
Fixed costs
|
$36,000
|
|
…………..$
|
|
$35,000
|
Operating income
|
$ 52,000
|
|
…………..$
|
|
$ 15,000
|
The amount of variable costs in the flexible budget will be :