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# Below is a question I have in my accounting homework from my Professor. I am stumped on how to prepare the budget

without having the estimated amount of packages that delivery service plans to deliver per month. I know this can be used to compute break-even but the question requires a budget projection. Am I missing something?

Speedy Delivery currently delivers packages for \$9 each. The variable cost is \$3 per package, and fixed costs are \$60,000 per month. Project a budget showing the expected current profit and profit after the changes in costs.                                                                                                                                                       1. Fixed costs are increased to \$75,000.

2. Selling price is increased by 10%.

3. Variable cost is increased to \$4.50 per unit.

4. Show the analysis in a table format.

Particulars
Current Figure
Budgeted Figure
Estimated delivery packages per month (Say)
100000
100000
Selling Price Per Package (A)
\$9
\$9*1.1 = \$9.90
Variable cost per package ( B)
\$ 3
\$4.50...

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