Ibis Company Prepared the Following Static Budget for the Coming

question 60

Essay

Ibis Company prepared the following static budget for the coming month:
$$\begin{array} { | l | l | r | } \hline \text { Static Budpgt } & & \\\hline \text { Units/volume } & & 12,000 \\\hline & \text { Per Unit } & \\\hline \text { Sales revenue } & \$ 20.00 & \$ 240,000 \\\hline \text { Variable expenses } & \$ 9.00 & 108,000 \\\hline \text { Contribution margin } & & 132,000 \\\hline \text { Fixed Expenses } & & 130,000 \\\hline \text { Operating income(loss) } & & \$ 2,000 \\\hline\end{array}$$
Using the format below, please prepare a flexible budget including data at volumes of 13,000 and 14,000 units.
$\begin{array}{|l|l|l|l|l|}\hline \text { Flexible Budget } & & & & \\\hline & & 12,000 & 13,000 & 14,000 \\\hline & \text { Per Unit } & & & \\\hline \text { Snits/volume } & \$ 20.00 & & & \\\hline \text { Sariable expenses } & \$ 9.00 & & & \\\hline \text { Contribution margin } & & & & \\\hline \text { Fixed expenses } & & & & \\\hline \text { Operating income/(1oss) } & & & & \\\hline\end{array}$

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Definitions:

Internal Equity

A pay strategy ensuring fairness in employees' wages within the same organization, based on job value and employee contribution.

External Equity

A principle in compensation management that ensures an organization's pay rates are competitive with those in the external labor market.

Hay Profile Method

A job evaluation technique that assesses roles based on knowledge, problem solving, accountability, and working conditions to determine pay scales.

Clerical Employees

Workers who perform administrative and office duties, such as answering phones, typing, filing, and record keeping.