Question
Raj Auto Imports is a regional auto dealership that specializes in selling high-end cars. Master budget data and the actual results for the month of
Raj Auto Imports is a regional auto dealership that specializes in selling high-end cars. Master budget data and the actual results for the month of October are given below:
| Master Budget | Actual Results | |
| Sales (# of cars) | 60 | 70 |
| Sales price per car | $50,000 | $45,000 |
| Variable cost per car | $40,000 | $40,000 |
| Fixed costs | $350,000 | $350,000 |
What is the sales volume variance (of profit)?
| A. | $100,000 Favorable | |
| B. | $100,000 Unfavorable | |
| C. | $ 0 | |
| D. | $ 350,000 Favorable | |
| E. | $ 250,000 Favorable |
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
