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Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, the following information has been retrieved from the records. Static budget: Sales volume: 2,000 units: Price: $70 per unit Variable expense: $32 per unit: Fixed expenses: $37,500 per month Operating income: $500
Actual results: Sales volume: 990 units: Price: $74 per unit Variable expense: $35 per unit: Fixed expenses: $33,000 per month Operating income: $5,610 Calculate the flexible budget variance for fixed expenses.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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