Required:In good form, prepare the static budget operating income in contribution format.
Suppose actual sales demand increases to 700,000 units for August; assume the units are within the relevant range. Prepare the flexible budget for August in contribution format.
Compute and reconcile the sales volume variance for August. Indicate whether the variance is favorable or unfavorable.
In a one page composition, provide an explanation for the change in the sales volume variance for August, and identify the elements which give rise to the difference between the flexible and static budgets. Also explain the reason for completing a flexible budget for the period.Your paper should meet the following requirements:12 times romanwork original plagiarism software used by instructo