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C3. Cool Air Ltd. manufactures and sells home air conditioning systems. The budgeted sale price is $20,000 per systern. The company's budgeted variable cost of
C3. Cool Air Ltd. manufactures and sells home air conditioning systems. The budgeted sale price is $20,000 per systern. The company's budgeted variable cost of goods sold are $8,100 per system and monthly budgeted fixed costs is $169,700. The static budget for the month of August was based on 35 units sold. In August Cool Air Ltd. sold 38 units for 19,400 per system, and incurred variable cost of goods sold of $7,900 per system. Actual fixed costs were $167,400. (10 Marks) a. Complete the income statement performance report for August. (8 Marks) b. In proper sentence form explain two possible reasons for the sales variances. (2 marks)
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