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pregunta 2 A company sells only product A. The following information is available: Estimated purchase cost of A: $200/u Budgeted selling and administrative expenses are

pregunta 2

A company sells only product A. The following information is available:

Estimated purchase cost of A: $200/u Budgeted selling and administrative expenses are $200,000 per year The company plans to sell 2,000 units of A. Estimated selling price of A/unit: $500 In reality, the company sells 1,500 units of A at a unit price of $550. The actual purchase cost of product A was $210/unit Selling and administrative expenses are equal to those budgeted Determine the variance due to fewer units being sold than budgeted, or Volume Variance. Please select an alternative:

A. $90,000 (D)

B. $150,000 (D)

C. $60,000 (F)

D. $150,000 (F)

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