Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 15-11 Evaluating a decision to increase sales volume by lowering sales price LO 15-3,15-4,15-5 Zachary Educational Services had budgeted its training service charge at
Exercise 15-11 Evaluating a decision to increase sales volume by lowering sales price LO 15-3,15-4,15-5 Zachary Educational Services had budgeted its training service charge at $71 per hour. The company planned to provide 23,000 hours of training services during 2019. By lowering the service charge to $56 per hour, the company was able to increase the actual number of hours to 24,500. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Did lowering the price of training services increase revenue? Variance a. Volume variance b. Flexible budget variance .Was the decision profitable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started