$1.$ What is the static budget variance $($that is$,$ the difference between the original budget and actual results$)$ for the dinner? $2.$ Break down the static budget variance into a volume variance and a flexible budget variance for the dinner. What do these variances tell you? $3.$ Break down the flexible budget variance into price and efficiency variances. What do these variances tell you? $4.$ Break down the price variance into a charge variance and an exchange variance. What do these variances tell you? Note that the charge variance is based solely on the difference between the budgeted price and actual price $($based on the currency rate used in the organization$$s budget$).$ The exchange variance is based solely on the difference between budgeted exchange rate and the exchange rate actually used in paying the invoice. $5.$ Based on your calculations, what is the primary source of the problems with the dinner? Who appears to be most directly responsible for the dinner failure? Assuming that the problem behind the dinner is the general cause of the EAPC$$s challenges this year, what recommendations would you make to avoid these problems in the future?