Wilcox Company produced 80,000 units, 8,000 more units than
budgeted. Production data are as follows. Except for physical units, all quantities
are in dollars:

Transcribed Image Text:

ACTUAL RESULTS FLEXIBLE- SALES STATIC AT ACTUAL PRICES BUDGET VARIANCES FLEXIBLE VOLUME (MASTER) BUDGET VARIANCES BUDGET Physical units 80,000 72,000 Sales ? $6,400 F ? $720,000 Variable costs $492,000 ? $480,000 ? Contribution margin ? ? ? ? ? Fixed costs ? Operating income ? $8,000 U ? ? ? $195,000 ? ? ? 1. Fill in the unknowns. 2. Briefly explain why the original target operating income was not attained.