According to its original plan, Jordan Consulting Services Company plans to char

Question

According to its original plan, Jordan Consulting Services Company plans to charge its customers for service at $130 per hour in 2018. The company president expects consulting services provided to customers to reach 49,000 hours at that rate. The marketing manager, however, argues that actual results may range from 45,000 hours to 53,000 hours because of market uncertainty. Jordan's standard variable cost is $41 per hour, and its standard fixed cost is $1,480,000. Required Develop flexible budgets based on the assumptions of service levels at 45,000 hours, 49,000 hours, and 53,000 hours. Answer is not complete. Flexible Budget 45,000 Hours49,000 Hours53,000 Hours Flexible Budget Flexible Budget Sales Variable costs Contribution margin Fixed costs Net income $

Explanation / Answer

Flexible budget :

Flexible budget 45000 hour Flexible budget 49000 hours Flexible budget 53000 hours Sales 5850000 6370000 6890000 Variable costs 1845000 2009000 2173000 Contribution margin 4005000 4361000 4717000 Fixed cost 1480000 1480000 1480000 Net operating income 2525000 2881000 3237000

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