1)If a company has a favourable Sales Price variance and an unfavourable Sales Volume variance in a particular period, which of the followingstatements is most likely true?

Group of answer choices

The price variance probably caused the volume variance.

Thevolume variance probably caused theprice variance.

The two variances are probably not related to each other.

This is a trick question - there is no such thing as a Sales Volume variance.

2)Traceable Fixed Costs are:

Group of answer choices

amounts that can be clearly identified as the result of one reporting segment's activity

are sometimes shared with other reporting segments

are used in for-profit firms

violates the definition of a fixed cost

3)Division P of Turbo Corporation has the capacity for making 75,000 wheel sets per year and regularly sells 60,000 each year on the outside market. The regular sales price is $100 per wheel set, and the variable production cost per unit is $65. Division Q of Turbo Corporation currently buys 30,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $90 per wheel set. Division Q would like to buy the 30,000 wheel sets it needs annually from Division P at $87 per wheel set. What would be the change in annual operating income for the company as a whole, compared to what it is currently? What is the range of acceptable transfer prices?

Group of answer choices

$65 to $100

$35 to $87

No acceptable range exists

$65 to $90