Flexible budget. Sugar Candy Company sells sweets in bulk over the Internet. Sugar Taaksnlesevelmie variance Candy’s budgeted operating income for the year ended December 31, 2010, was $5,870,000.

$2,757,500 F As a result of continued explosive growth in Internet sales, actual operating income totalled

$7,985,300.

REQUIRED 1. Calculate the total static-budget variances.

2. Flexible-budget operating income was $8,627,500. Calculate the total flexible-budget and total sales-volume variances.

3 One oe on the total flexible-budget variance in the light of Sugar Candy’s explosive LO1