Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 10,000 travel locks for Gavin, Inc. (Click the icon to view the report.) (For variances with a $0 value, make sure to enter "0" in the appropriate cells.) Gavin, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2024 Actual Results Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ $ 10,000 170,000 51,800 118,200 15,600 102,600 Flexible Budget Variance $ $ Flexible Budget 10,000 150,000 50,100 99,900 15,100 84,800 Data table Gavin, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2024 Flexible Budget Variance Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Actual Results 10,000 S 170,000 (a) (b) 51,800 (d) 118,200 (1) 15,600 (h) () S 102,600 Print Done (c) S (e) (g) (0) (k) S Flexible Budget - X 10,000 150,000 50,100 99,900 15,100 84,800
Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 10,000 travel locks for Gavin, Inc. (Click the icon to view the report.) (For variances with a $0 value, make sure to enter "0" in the appropriate cells.) Gavin, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2024 Actual Results Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ $ 10,000 170,000 51,800 118,200 15,600 102,600 Flexible Budget Variance $ $ Flexible Budget 10,000 150,000 50,100 99,900 15,100 84,800 Data table Gavin, Inc. Flexible Budget Performance Report (partial) For the Month Ended April 30, 2024 Flexible Budget Variance Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Actual Results 10,000 S 170,000 (a) (b) 51,800 (d) 118,200 (1) 15,600 (h) () S 102,600 Print Done (c) S (e) (g) (0) (k) S Flexible Budget - X 10,000 150,000 50,100 99,900 15,100 84,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Complete the flexible budget
Transcribed Image Text:## Flexible Budget Performance Analysis
Complete the flexible budget variance analysis by filling in the blanks in the partial flexible budget performance report for 10,000 travel locks for Gavin, Inc.
### Gavin, Inc.
**Flexible Budget Performance Report (Partial)**
*For the Month Ended April 30, 2024*
| | Actual Results | Flexible Budget Variance | Flexible Budget |
|-------------------------|----------------|--------------------------|-----------------|
| Units | 10,000 | (a) | 10,000 |
| Sales Revenue | $170,000 | (e) | $150,000 |
| Variable Costs | $51,800 | (f) | $50,100 |
| Contribution Margin | $118,200 | (g) | $99,900 |
| Fixed Costs | $15,600 | (h) | $15,100 |
| Operating Income | $102,600 | (i) | $84,800 |
### Explanation
- **Units:** The actual and flexible budget units are both 10,000.
- **Sales Revenue:** The actual sales revenue is $170,000 compared to a flexible budget of $150,000, leading to a variance.
- **Variable Costs:** The actual variable costs are $51,800, while the flexible budget is $50,100.
- **Contribution Margin:** Calculated from sales revenue minus variable costs.
- **Fixed Costs:** Fixed costs are slightly higher in actual results compared to the budget.
- **Operating Income:** The actual operating income is $102,600, which is higher than the budgeted $84,800.
Understanding these components of the flexible budget can aid in determining areas of strength and opportunities for financial improvement within the company.
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