ANBC Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report.

The company uses management by exception to address flexible budget variances. On which variance would the company focus first?

A) 40 inch

B) 36 inch long

C) 36 inch short

D) 32 inch

Product type: 40 inch 36 inch long 36 inch short 32 inch Actual Sales Revenue $31,500 $40,150 $36,200 $19,000 Revenue Center Performance Report Flexible Budget Flexible Budget Variance U/F $30,000 $42,000 $33,000 $20,000 Sales Volume Variance U/F Static Budget $40,000 $33,000 $30,000 $28,000