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