Requirement 2. Comment on the results in requirement 1

The total static-budget variance in operating income is.

There is a(n)

total flexible-budget

variance and a(n)

sales-volume variance. The sales-volume variance arises solely because actual units

manufactured and sold were

than the budgeted 3,000 units. The flexible-budget variance in operating income is due

primarily to the

in unit variable costs.

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