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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
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 Actual Flexible Sales Product Sales Budget Flexible Volume Static Type Revenue Variance U/E Budget Variance U/F Budget 40 inch $31,700 $30,500 $40,600 36 inch long 40,200 42,000 33,200 36 inch short 36,100 33,100 31,100 32 inch 19,000 19,700 28,450 The company uses management by exception to address flexible budget variances. On which product type would the company first focus? O A. 32 inch O B. 36 inch short O C. 36 inch long OD. 40 inch
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