Question 1preparing a flexible budget as well as evaluating

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Reference no: EM13350320

Question 1

Preparing a Flexible Budget as well as Evaluating Performance

Home Products Company manufactures a whole line of kitchen glassware. The Beverage Division concentrates in 12-ounce drinking glasses. Erin Fisher the superintendent of the Beverage Division, asked the controller to make a report of her division's performance in April. The subsequent report was handed to her a few days later-

In discoursing the report with the controller Fisher stated Profits have been declining in recent months, however this report indicates that our production process is operating efficiently

Obligatory

1. Make a flexible budget for the Beverage Division using production levels of 45,000 units, 50,000 units, and 55,000 units. If required, round per unit amounts to two decimal places

Reference no: EM13350320

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