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The actual information pertains for the month of August.As part of the budgetin...
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The actual information pertains for the month of August.As part of the budgeting process,Alloway developed the following static budget for August.Alloway is in the process of preparing the flexible budget and understanding the results.
The flexible budget for variable costs is:
| values are in $ | Actual | Static budget | |
| Sales volume (in units) | 20000 | 25000 | |
| Sales revenues | 1000000 | 1250000 | |
| Variable costs | 512000 | 600000 | |
| Contribution Margin | 488000 | 650000 | |
| Fixed costs | 458000 | 450000 | |
| Operating Profit | 30000 | 200000 |
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