The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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