20 in revenue per passenger mile. Variable expenses were 195,000 / 1,500, 000 = $0.13 per passenger mile in the flex budget. Fixed costs were $80,000 and that should not change.
The results Flex for Actual Level shows that the actual performance was lower than what would have been expected given the actual sales levels recorded and the figures listed in the static budget. This is to be expected, because the actual revenue per passenger mile was decreased in order to achieve those higher passenger mile figures.
The columns 2 and 4 can now be filled in, according to the formulas presented on page 310. Column 2 = Column 1 -- Column 3; and Column 4 = Column 3 -- Column 5.
The total chart is as follows:
Flex for Sales-Act
Static
Actual
Variances
Actual level
Variance
Budget
Passenger Miles
1650000
0
1650000
150000
1500000
Revenue
303600
-26400
330000
30000
300,000
Variable Exp
200,000
-14500
214500
19500
195,000
Contribution
103,600
-11900
115,500
10500
105,000
Fixed Exp
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