Question
Lola Inc. produces a product with the following revenue and cost structure: Selling price $87.92 Variable cost per unit 42.41 Fixed costs 800,000 Budgeted production
Lola Inc. produces a product with the following revenue and cost structure:
|
| Selling price | $87.92 |
|
| Variable cost per unit | 42.41 |
|
| Fixed costs | 800,000 |
Budgeted production and sales for the year ending December 31, 20x9 is 24811 units.
The actual results at the end of the year, December 31, 20x9, are given below:
|
| Actual selling price | $83.87 |
|
| Variable cost per unit | 23.94 |
|
| Fixed costs | 850,000 |
|
| Actual volume | 29687 |
What is Lolas sales volume variance for the year 20x9? Note: a negative number represents an unfavourable variance and a positive number represents a favourable variance.
Select one:
a. $292219
b. $-120232
c. $-221907
d. $221907
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