(Solution) - Brabham Enterprises manufactures tires for the Formula I motor racing -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

Paper Details

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2015, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selling price was $110 per tire. Actual results in August 2015 were 2,800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229,600, and the actual total fixed costs were $50,000.
Required
1. Prepare a performance report (akin to Exhibit 7-6) that uses a flexible budget and a static budget.
2. Comment on the results in requirement 1.