Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

Actual Budgeted
Units sold 991,000 1,000,000
Variable costs 1,280,000 1,500,000
Fixed costs 955,000 905,000

Prepare the actual income statement, flexible budget, and static budget.

                                         Actual              Budgeted

Units sold                        991,000           1,000,000

Variable costs              1,280,000           1,500,000

Fixed costs                     955,000             905,000

                        Actual Results    Flexible Budget   Static Budget

Units sold              991,000             991,000              1,000,000

Revenues           $9,910,000         $9,910,000        $10,000,000

Variable costs  -$1,280,000        -$1,486,500         -$1,500,000

Contr. margin           $8,630,000        $8,423,500         $8,500,000

Fixed costs            -$955,000          -$905,000           -$905,000

Operating income   $7,675,000         $7,518,500          $7,595,000

The static budget only considers standard revenue (units sold and price) and costs (both variable and fixed). While a flexible budget will be calculated using standard costs but with actual units sold and produced. Both static and flexible budgets use the same fixed costs, only variable costs and revenues differ.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.