Budgeting

PeteLC

Hello all have a quick question that I cannot work out.

I have a student with me and the answer does not make sense (unless I'm working in '000)

Its a flexed budget!

Original - 32,000 with 63,000 units
Actual - 35,000 with 68,000 units

answer - 36,000 with 68,000 units

only details i have is - the budget is stepped increasing at every 8,000 units

any ideas?

Woooof

PeteLC wrote: »

Hello all have a quick question that I cannot work out.

I have a student with me and the answer does not make sense (unless I'm working in '000)

Its a flexed budget!

Original - 32,000 with 63,000 units
Actual - 35,000 with 68,000 units

answer - 36,000 with 68,000 units

only details i have is - the budget is stepped increasing at every 8,000 units

any ideas?

There are 8 steps to 63,000 units. £32,000 / 8 steps = £4,000 per step

There are 9 steps to the actual figure of 68,000 units so £4,000 * 9 steps = £36,000