10.

The static budget, at the beginning of the month, for Beacon Banner Company follows: Static budget: Sales volume: 1100 units; Sales price: $70.00 per unit Variable costs: $33.00 per unit; Fixed costs: $37,800 per month Operating income: $2900 Actual results, at the end of the month, follows: Actual results: Sales volume: 995 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $35,000 per month Operating income: $4800 Calculate the sales volume variance for revenue.

Select one:

A. $7350 U

B. $4975 F

C. $2800 U

D. $3885 U

11.

The static budget, at the beginning of the month, for Divine Dcor Company, follows: Static budget: Sales volume: 1500 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $38,000 per month Operating income: $19,000 Actual results, at the end of the month, follows: Actual results: Sales volume: 990 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $33,000 per month Operating income: $6600 Calculate the flexible budget variance for sales revenue.

Select one:

A. $6980 F

B. $4950 F

C. $4950 U

D. $6980 U

14.

Worldwide Logistics provides the following information:

Operating income	$1,500,000
Net sales	$14,000,000
Average total assets	$2,000,000
Management's target rate of return	30%

What is the company's residual income?

Select one:

A. $600,000

B. $900,000

C. $500,000

D. $1,550,000