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RTI Company s master budget calls for production and sale of 1 8 , 8 0 0 units for $ 9 5 , 8 8
RTI Companys master budget calls for production and sale of units for $ variable costs of $ and fixed costs of $ During the most recent period, the company incurred $ of variable costs to produce and sell units for $ During this same period, the company earned $ of operating income.
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Determine the following for RTI Company: Do not round intermediate calculations. Round your answers to the nearest whole dollar.
a Flexible budget operating income.
b Flexible budget variance, in terms of contribution margin. Was this variance favorable or unfavorable?
c Flexible budget variance, in terms of operating income. Was this variance favorable or unfavorable?
d Sales volume variance, in terms of contribution margin. Was this variance favorable or unfavorable?
e Sales volume variance, in terms of operating income. Was this variance favorable or unfavorable?
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