
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text: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
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