Jared Expects to Charge $60 Per Hour for His Industrial

Jared expects to charge $60 per hour for his industrial maintenance business during the following year.He expects to reach 50,000 hours at that price.Jared's partner disagrees with the estimate and expects closer to 40,000 hours. What should Jared do when preparing the budget for the year?

A) Create a flexible budget showing a range of outcomes between 40,000 hours and 50,000 hours.
B) Create two master budgets, one at 50,000 hours and one at 40,000 hours.
C) Create only one budget at the more optimistic volume of 50,000 hours.
D) Create a volume budget based on actual performance.

Correct Answer:

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