At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000
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Facility expenses in the flexible budget comes out to be $24,260.
<h3>What is flexible budged?</h3>A flexible budget is one that is based on various sales volumes. For each projected level of production, the static budget is adjusted by a flexible budget. Due to this flexibility, management is able to predict how the budgeted figures will change as sales volume changes.
Calculation for the facility expenses in the flexible budget for December:
The table of the data used in budgeting: Fixed Element per Month Variable element per tenant-day Revenue is in attachment-
Facility expenses in the flexible budget = Variable + Fixed
= (3650*4.40) + 8200
= 16,060 + 8200
= 24,260
The wages and salaries in the planning budget for December would be closest to $24,260.
To know more about the flexible budget, here
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