Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Static vs. Flexible Budget Analysis Project BLU-Grass Acres is a 350-acre farm on the outskirts of Louisville, Kentucky, which specialize in the boarding of broodmares and their foals. They have the capacity to board up to 75 horses. The recent economic downturn in the thoroughbred industry has made the boarding business extremely competitive in this area. To meet the competition, BLU-Grass planned in 2022 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees. Jayzee the bookkeeper (sometimes called LAZ-E!) started to prepare some financial analysis and he remembered learning about static and flexible budgets in his college accounting class. Jayzee starts with a static budget report. Unfortunately, he doesn’t know how to complete the report and management wants an analysis on the year. The static budget income statement budget for the year is based on an expected 365 boarding days per year for each horse, at a fee of $30 per mare. The variable expenses per mare per day were budgeted: feed $7, veterinary fees $4, blacksmith fees $0.55, and supplies $0.35. All other budgeted expenses were either semifixed or fixed. During the year, management DID NOT replace a worker who quit in June, but it did issue a new advertising brochure and did more entertaining of clients. Jayzee hires you as a consultant and needs your help, quick, to be sure he is prepared for the meeting!!

Static vs. Flexible Budget Analysis Project BLU-Grass Acres is a 350-acre farm on the outskirts of Louisville, Kentucky, which specialize in the boarding of broodmares and their foals. They have the capacity to board up to 75 horses. The recent economic downturn in the thoroughbred industry has made the boarding business extremely competitive in this area. To meet the competition, BLU-Grass planned in 2022 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees. Jayzee the bookkeeper (sometimes called LAZ-E!) started to prepare some financial analysis and he remembered learning about static and flexible budgets in his college accounting class. Jayzee starts with a static budget report. Unfortunately, he doesn’t know how to complete the report and management wants an analysis on the year. The static budget income statement budget for the year is based on an expected 365 boarding days per year for each horse, at a fee of $30 per mare. The variable expenses per mare per day were budgeted: feed $7, veterinary fees $4, blacksmith fees $0.55, and supplies $0.35. All other budgeted expenses were either semifixed or fixed. During the year, management DID NOT replace a worker who quit in June, but it did issue a new advertising brochure and did more entertaining of clients. Jayzee hires you as a consultant and needs your help, quick, to be sure he is prepared for the meeting!!

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

complete the flexible budget report (use formulas and cell referencing whenever possible in spreadsheet)

A В C D E Actual Master Difference Favorable or Unfavorable Number of Mares 45 68 Number of Boarding Days 16250 Sales ($) $568,750.00 Variable Expenses Feed $146,250.00 Veterinary Fees $97,500.00 Blacksmith Fees $5,688.00 Supplies $4,063.00 Total Variable Expenses $253,500.00 Contribution Margin $315,250.00 Less: Fixed Expenses Depreciation $40,000.00 $40,000.00 Insurance $25,000.00 $11,000.00 Utilities $17,000.00 $14,000.00 Repairs and Maintenance $30,250.00 $11,000.00 Labor $88,000.00 $95,000.00 Advertisement $35,000.00 $8,000.00 Entertainment $50,000.00 $5,000.00 Total Fixed Expenses $285,250.00 Net Income $30,000.00
Transcribed Image Text:A В C D E Actual Master Difference Favorable or Unfavorable Number of Mares 45 68 Number of Boarding Days 16250 Sales ($) $568,750.00 Variable Expenses Feed $146,250.00 Veterinary Fees $97,500.00 Blacksmith Fees $5,688.00 Supplies $4,063.00 Total Variable Expenses $253,500.00 Contribution Margin $315,250.00 Less: Fixed Expenses Depreciation $40,000.00 $40,000.00 Insurance $25,000.00 $11,000.00 Utilities $17,000.00 $14,000.00 Repairs and Maintenance $30,250.00 $11,000.00 Labor $88,000.00 $95,000.00 Advertisement $35,000.00 $8,000.00 Entertainment $50,000.00 $5,000.00 Total Fixed Expenses $285,250.00 Net Income $30,000.00
Static vs. Flexible Budget Analysis Project BLU-Grass Acres is a 350-acre farm on the outskirts of Louisville, Kentucky, which specializes in the boarding of broodmares and their foals. They have the capacity to board up to 75 horses. The recent economic downturn in the thoroughbred industry has made the boarding business extremely competitive in this area. To meet the competition, BLU-Grass planned in 2022 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees. Jayzee the bookkeeper (sometimes called LAZ-E!) started to prepare some financial analysis and he remembered learning about static and flexible budgets in his college accounting class. Jayzee starts with a static budget report. Unfortunately, he doesn't know how to complete the report and management wants an analysis on the year. The static budget income statement budget for the year is based on an expected 365 boarding days per year for each horse, at a fee of $30 per mare. The variable expenses per mare per day were budgeted: feed $7, veterinary fees $4, blacksmith fees $0.55, and supplies $0.35. All other budgeted expenses were either semifixed or fixed. During the year, management DID NOT replace a worker who quit in June, but it did issue a new advertising brochure and did more entertaining of clients. Jayzee hires you as a consultant and needs your help, quick, to be sure he is prepared for the meeting!!
Transcribed Image Text:Static vs. Flexible Budget Analysis Project BLU-Grass Acres is a 350-acre farm on the outskirts of Louisville, Kentucky, which specializes in the boarding of broodmares and their foals. They have the capacity to board up to 75 horses. The recent economic downturn in the thoroughbred industry has made the boarding business extremely competitive in this area. To meet the competition, BLU-Grass planned in 2022 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees. Jayzee the bookkeeper (sometimes called LAZ-E!) started to prepare some financial analysis and he remembered learning about static and flexible budgets in his college accounting class. Jayzee starts with a static budget report. Unfortunately, he doesn't know how to complete the report and management wants an analysis on the year. The static budget income statement budget for the year is based on an expected 365 boarding days per year for each horse, at a fee of $30 per mare. The variable expenses per mare per day were budgeted: feed $7, veterinary fees $4, blacksmith fees $0.55, and supplies $0.35. All other budgeted expenses were either semifixed or fixed. During the year, management DID NOT replace a worker who quit in June, but it did issue a new advertising brochure and did more entertaining of clients. Jayzee hires you as a consultant and needs your help, quick, to be sure he is prepared for the meeting!!
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS