Nappon Co. has two products named X and Y. The firm had the following master budget...

Transcribed Image Text:

Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: Product X Product Y Sales Variable Costs Contribution Margin $260,000 $360,000 Total $620,000 156,000 180,000 336,000 $104,000 $180,000 $284,000 Fixed costs 130,000 108,000 238,000 Operating Income (Loss) $(26,000) $ 72,000 $ 46,000 Selling Price per unit $ 130.00 $ 60.00 The following actual operating results were reported after the year was over: Product X Sales $202,500 Product Y $467,500 Total $670,000 Variable Costs 117,000 212,500 Contribution Margin $ 85,500 $255,000 Fixed costs Units Sold Operating Income (Loss) 140,000 $(54,500) 108,000 329,500 $340,500 248,000 $147,000 $ 92,500 1,500 8,500 The selling price variance for Product X is: Multiple Choice $40,000 favorable. $26,000 unfavorable. $40,000 unfavorable. $7,500 favorable. $30,000 unfavorable. Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: Product X Product Y Sales Variable Costs Contribution Margin $260,000 $360,000 Total $620,000 156,000 180,000 336,000 $104,000 $180,000 $284,000 Fixed costs 130,000 108,000 238,000 Operating Income (Loss) $(26,000) $ 72,000 $ 46,000 Selling Price per unit $ 130.00 $ 60.00 The following actual operating results were reported after the year was over: Product X Sales $202,500 Product Y $467,500 Total $670,000 Variable Costs 117,000 212,500 Contribution Margin $ 85,500 $255,000 Fixed costs Units Sold Operating Income (Loss) 140,000 $(54,500) 108,000 329,500 $340,500 248,000 $147,000 $ 92,500 1,500 8,500 The selling price variance for Product X is: Multiple Choice $40,000 favorable. $26,000 unfavorable. $40,000 unfavorable. $7,500 favorable. $30,000 unfavorable.