Question
Squeaky Bear Poutine is a popular late-night take-out restaurant. The owner budgets to sell each classic poutine for $10. She budgets to sell 1,500 classic
Squeaky Bear Poutine is a popular late-night take-out restaurant. The owner budgets to sell each classic poutine for $10. She budgets to sell 1,500 classic poutines per month and spend $4,500 on food. Due to road construction in front of the location in June, she only sells 1,000 classic poutines at a cost of $3.50 each, earning $9,500 in revenue. Required a) Calculate the total static budget variance. b) Calculate the total sales-volume variance. c) Calculate the total flexible budget variance. d) Explain the flexible budget variance. e) Explain some possible reasons for the flexible budget variance. f ) Calculate the sales price variance. g) Calculate the cost variance
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