Question

Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of ​$31 per case. The following information relates to the budget for Divine Muffins for this year​ (all figures are annual totals unless otherwise​ noted.

During the​ year, Divine Muffins actually sold 9,200 cases, resulting in total sales revenue of $293,300. Actual expenses​ (in total) from this year are as​ follows:

Budgeted sales in cases . . . . . . . .	8,700 cases
Packaging cost per case . . . . . . . .		$2
Shipping expense per case . . . . . .		$5
Sales commission expense . . . . . .	3% of sales price
Salaries expense . . . . . . . . . . . . . .		$6,100
Office rent . . . . . . . . . . . . . . . . . . . .		$3,300
Depreciation . . . . . . . . . . . . . . . . . .		$2,500
Insurance expense . . . . . . . . . . . . .		$1,700
Office supplies expense . . . . . . . .		$900

Packaging cost . . . . . . . . . . . . . . . . . . .	$19,100
Shipping expense . . . . . . . . . . . . . . . . .	$47,900
Sales commission expense . . . . . . . . .	$8,799
Salaries expense . . . . . . . . . . . . . . . . .	$7,600
Office rent . . . . . . . . . . . . . . . . . . . . . . .	$3,300
Depreciation . . . . . . . . . . . . . . . . . . . . .	$2,500
Insurance expense . . . . . . . . . . . . . . . .	$1,400
Office supplies expense . . . . . . . . . . . .	$1,100

Flexible		Flexible			Master
	Actual	Budget		Budget	Volume		Budget
	9,200 cases	Variance		9,200 cases	Variance		8,700 cases
Sales revenue
($31 per case)

Variable operating expenses:
Packaging expense ($2 per case sold)
Shipping expense ($5 per case sold)
Sales commissions (3% of sales price)

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Fixed operating expenses:
Salaries
Office rent
Depreciation
Insurance expense
Office Supplies expense

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Total operating expenses

Answer 1

Actual Results 9200 Flexible Budget Variance Flexible Budget 9200 Master Budget Variance Master Budget 8700 Number of cases sold (9) 293300 8100 285200 15500 F 269700 19100 47900 8799 700 1900 243 18400 46000 8556 1000 2500 465 се 17400 43500 8091 U Sales revenue ($31.00*q) Variable operating expenses: Packaging expense ($2.00* q) Shipping expense ($5.00*q) Sales commissions ($0.93*q) Fixed operating expenses: Salaries expense ($6,100) Office rent ($3,300) Depreciation ($2,500) Insurance expense ($1,700) Office supplies expense ($900) Total operating expenses Net operating income 7600 3300 2500 1400 1100 91699 201601 1500 None None 300 200U 4243 3857 F 6100 3300 2500 1700 900 87456 197744 None None None None None U F 6100 3300 2500 1700 900 83491 186209 | L 3965 11535