1) In Chapter 08, we learned about Flexible Budgets.

Using the FLEXIBLE BUDGET sample in Chapter 08, , Section 8.1.2, Exhibit 8-3, as your guide, create a flexible budget with two levels of activity.

At a minimum, each level of activity in your budget should have: Sales, Variable Costs, Contribution Margin, Fixed Costs, Operating Income.

This is worth 15 points overall, 7.5 points for each level of activity.

When your file is ready to submit, click on "Graded: Learning Unit 3, Ch 08 Flexible Budget" above.

In the next screen, attach your file or type your submission in the space provided. If attaching a file, your submission must be in one of the following formats: Excel, Word or PDF.

Begin a few days prior to the deadline so you can contact your instructor with questions.

2) AJ & Company manufactures canoes. Their newest product sells for $1100. The company produces and sells 3,500 units per year. Cost data follows:

Variable manufacturing	$630	per unit
Variable selling and administrative	$100	per unit
Fixed manufacturing	$400,000	per year
Fixed selling and administrative	$320,000	per year

A potential deal has come up for a one-time sale of 20 units at a special price of $900 per unit.

The sale will not negatively impact the company's regular sales activities.

It will require the normal variable manufacturing costs and variable selling and administrative costs.

There is plenty of excess capacity and the deal will not impact fixed costs.

Create a Differential Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted.

You can see a sample analysis in Chapter 10, Exhibit M10-5.

This assignment is worth 15 points overall, 9 points for proper setup, 3 points for correct final answer, 3 points for formulas.

When your file is ready to submit, click on "Graded: Learning Unit 4, Ch 10 Special Pricing Decision" above. In the next screen, attach your file.

This assignment must be submitted in EXCEL with formulas in at least two cells.