Flex Budget

angi13

Hi,

I am trying to resolve question 5.1 Chapter Activities Osborne books and Task 2.1 from practice Assessment April 2010, i am stuck on how to calculate Equipment hire.

Can anybody help me please?

Thank you

PGM

If you can type the question in?

rehana

If it is the one where you have to flex it to 75000
Then the budgeted cost for 80 000 units is £15000 and the notes tell you that equipment hire is based on a cost for each 8000 units or fewer.

80 000/8000 = 10
£15000/10 = £1500 per 8000 units

for 75000 units

75000/8000 = 9.375 so will still be 10

10 x £1500 = £15000

angi13

Hi Rehana,

Thank you for your help.

Angi