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Maizy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $70,000 $33,000 $24,000
Maizy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $70,000 $33,000 $24,000 Variable expenses $32,000 $13,000 $14,000 Contribution margin $38,000 $20,000 $10,000 Fixed expenses $18,000 $18,000 $18,000 Operating income (loss) $20,000 $2,000 $(8,000) Maizy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Maizy Productions discontinues model F and rents the space formerly used to produce product F for $19,000 per year, what effect will this have on operating income? O A. Increase $9,000 B. Decrease $9,000 OC. Increase $23,000 OD. Decrease $23,000 The difference between the actual revenues and expenses and the master budget is known as a O A. flexible budget variance. O B. capital budget variance. OC. master budget variance. D. static budget variance
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