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A hairstyling salon owner constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes
A hairstyling salon owner constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40. Costs include rent of $5,000; payments to hairstylists of $20 per customer; and overhead of $10 per customer. In June, the owner had 1,000 customers and the net income was $8,000. What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results? CORRECT YOUR ANSWER ANSWER This net income shows a favorable $8,000 variance. This net income shows a favorable $3,000 variance. This net income shows a favorable $6,000 variance. This net income shows a favorable $2,000 variance
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