Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies. The sales office is a revenue center and prepares a monthly responsibility report. The partially completed responsibility report is provided.

Revenue Center Responsibility Report
Product Type	Actual Sales Revenue	Flexible Budget Variance	U/F	Flexible Budget	Sales Volume Variance	U/F	Static Budget
40 inch	$31,600			$30,000			$40,600
36 inch long	40,150			42,000			33,100
36 inch short	36,000			33,000			31,100
32 inch	19,000			19,7000			28,000

The company uses management by exception to address flexible budget variances. On which product type would the company first focus?

Question content area bottom

Part 1

A.

40 inch

B.

36 inch long

C.

36 inch short

D.

32 inch