Simple budget flexible budget actual resultsrevenues 47 48

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SIMPLE BUDGET FLEXIBLE BUDGET ACTUAL RESULTS

Revenues $4.7 $4.8 $4.5
Costs 4.1 4.1 4.2
Profit 0.6 0.7 0.3

a. Evaluate and interpret the two profit variances.

b. Evaluate and interpret the two revenue variances.

c. Evaluate and interpret the two cost variances.

d. How are the variance related?

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