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Posted: June 15th, 2022

MBA 6100 Case Study #2 Wendy’s Waffles is preparing their 2016 budget

MBA 6100 Case Study #2Wendy’s Waffles is preparing their 2016 budget. They want to prepare a flexible budget for use eachmonth. They estimate sales will be between 200,000 and 300,000 boxes of frozen pancakes per month.Question 1: Prepare a flexible budget in Excel for Wendy’s Waffles.a) Show the flexible budget based on 200,000 units (boxes) produced.b) Show the flexible budget based on 300,000 units (boxes) produced.c) Show the flexible budget cost formulas for Wendy’s Waffles.d) Explain the benefit of flexible budgets and when they should be used.Question 2: The months of January and February are complete, and Wendy’s Waffles wants to comparetheir budget to their actual results.a) Show the flexible budget based on actual units produced for each month.b) Compare actual results to budgeted results (Favorable or Unfavorable) for each month.c) Provide possible explanations for the favorable and unfavorable variances. Was net operatingincome better or worse than budget? Provide recommendations for Wendy’s Waffles.Calculations and backup should be completed and submitted in Excel. Use proper Income Statementformatting. Analysis can either be typed into cells in Excel (formatted to be easily legible) or typed into atext box in Excel. Students are expected to work independently.

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