# Budgeting help please

Hoamai
New MemberPosts:

**10**Registered
Hi all,

I am doing practice assessment 1 in workbook (osborn), task 2.2:

original actual flexed

volume (unit) 90000 80000 80000

energy (£) 55000 55000

the fixed element is £10000

the answer for flexed is £50000.

I tried to work out many ways like hight -low but can not find the correct answer for the flexed budget.

I would appreciate if you guy can show me how to get the answer.

I am doing practice assessment 1 in workbook (osborn), task 2.2:

original actual flexed

volume (unit) 90000 80000 80000

energy (£) 55000 55000

the fixed element is £10000

the answer for flexed is £50000.

I tried to work out many ways like hight -low but can not find the correct answer for the flexed budget.

I would appreciate if you guy can show me how to get the answer.

## Comments

794RegisteredWith flexed budgets you're only ever looking at the original budget figures so in the original budget you had energy costs of £55,000 for a volume of 90,000 units. Of this £10,000 was fixed so £45,000 was variable, this equates to £45,000/90,000 = 50p per unit. Now apply this to the flexed budget - 80,000 units x 50p = £40,000 plus the fixed part of £10,000 makes £50,000.

10Registered