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Company XYZ has prepared its budget for the upcoming quarter. They expect the following: Sales Revenue: $300,000 Cost of Goods Sold: 40% of Sales Revenue

Company XYZ has prepared its budget for the upcoming quarter. They expect the following:

  • Sales Revenue: $300,000
  • Cost of Goods Sold: 40% of Sales Revenue
  • Operating Expenses: $100,000
  • Interest Expense: $5,000
  • Tax Rate: 25% Additionally, they want to analyze their performance by comparing the budgeted amounts with the actual results for the quarter. The actual results are as follows:
  • Actual Sales Revenue: $280,000
  • Actual Cost of Goods Sold: $110,000
  • Actual Operating Expenses: $90,000
  • Actual Interest Expense: $4,000 Calculate the budgeted amounts, actual amounts, and variances for each line item, and analyze the reasons for the variances.

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