Question re budgeting

PeteLC
PeteLC Registered Posts: 56 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
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?

Comments

  • rehana
    rehana Registered Posts: 61 Regular contributor ⭐
    63000/8000 = 7.875 so will be 8
    32000/8000 = £4000 per 8000

    68000/8000 = 8.5 so will be 9
    9 x £4000 = £36000

    hope that makes sense

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