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Terry Auto Imports is a regional auto dealership that specializes in selling high-end imported luxury automobiles. Master budget data and actual results for October are

Terry Auto Imports is a regional auto dealership that specializes in selling high-end imported luxury automobiles.
Master budget data and actual results for October are as follows:
Master budget Actual Results
Sales (# of cars) 48 57
Sales price per car $50,000 $45,000
Variable cost per car $40,000 $40,000
Fixed costs $250,000 $250,000
Terry Auto has 5 summer trainees (Call them A, B, C, D and E). Each has calculated the sales volume variance
and sales price variance for October. Who is right? Select ONE statement.
A.

Sales volume variance Sales Price Variance
$285,000 Favorable $90,000 Unfavorable
B.

Sales volume variance Sales Price Variance
$90,000 Favorable $285,000 Unfavorable
C.

Sales volume variance Sales Price Variance
$285,000 Favorable $450,000 Unfavorable
D.

Sales volume variance Sales Price Variance
$285,000 Unfavorable $90,000 Favorable
E.

Sales volume variance Sales Price Variance
$450,000 Favorable $285,000 Unfavorable

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