Reference no: EM132755237

Arien Diner is a charity supported by donations that provide free meals to the homeless. The diner's budget for February was based on 4,000 meals, but the diner served 3,400 meals. The diner's director has provided the following cost formulas to use in budgets:

                                                   Fixed costs                 Variable cost

                                            per month                  per meal

Groceries                                        0                         $ 2.20

Kitchen operations                          4,100                      1.90

Administrative expenses                   3,600                        $ 0.60

Fundraising expenses                                1,100                   0.00

Required:

Problem 1: Prepare the diner's flexible budget for the actual number of meals served in February. The budget will only contain the costs listed above; no revenues will be on the budget.