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I’m attempting a question on flexed budgets but i’m realizing that revenue seems not to be fixed. How do i flex it if it isn’t fixed? High – Low? #kindaconfused. Please help me 🙁
Revenue is certainly not likely to be fixed!
You need to calculate the revenue per unit and flex from there.
(It is possible for it to be part fixed and part variable, in which case you would use the high/low approach, but this is very unlikely for the exam (and in practice))
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