# Notes on Flexible Budgets and Budgeting

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1. The budget presented in a flexible budget. A flexible budget "provides budgeted data for different levels of activity" (No author, 2013). This budget is created to illustrate the budget data given 120, 100 or 66 student levels. 2. The total revenue per student, excluding grants, is as follows: \$3546 + \$1775 + \$170 - \$42.44 + \$246.50 + \$368 = \$6063.06. 3. There are two ways to look at the "total expenses per student" question. The first is to include fixed costs, and derive an average expense per student. This figure is already included in the spreadsheet. At 120 students it is \$4518; at 100 students it is \$5283 and at 66 students it is \$7646. The other way of looking at the question is simply to analyze the total variable expenses per student. This is: \$100 + \$40 + \$150 + \$60 + \$98 + 246.50 = \$694.50. 4. Not all expenses seem necessary, although each person will have his or her own definition of the term "necessary." Certainly it is questionable that payroll and salaries would be fixed to the same amount whether there are 120 students or 66, almost half the size of student body. Advertising, "technology enhancement", a \$25,000 computer budget, grass removal and printing & copying expenses are all questionable as to their presence, or amount, on this budget. 5. This school is viable. The flexible budget shows that the school loses money with 66 students, but is profitable to a healthy level at either 100 or 120 students. The precise breakeven point can be