The Ace Company sells a single product at a budgeted selling price per unit of $30. Budgeted fixed manufacturing costs for the coming period are $12,000, while budgeted fixed marketing expenses for the period are $25,000. Budgeted variable costs per unit include $4 of selling expenses (commission) and $6of manufacturing costs. What is the budgeted operating income if the anticipated sales volume for the period is

(1) 10,200 units

(2) 15,200 units

Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $72 per unit. Because of competitive pressures, the company had to cut selling prices by 5% during the year. Budgeted variable costs per unit are $49, and budgeted total fixed costs are $164,500for the year. Anticipated sales volume for the year was18,500 units. Actual sales volume was 10% less than budget.

(1) What was the sales price variance for the year?

(2) Label this variance F (favorable) or U (unfavorable), as appropriate

Chapman Inc. sells a single product, Zud, which has a budgeted selling price of$38 per unit and a budgeted variable cost of $26 per unit. Budgeted fixed costs for the year amount to $52,000. Actual sales volume for the year(61,000 units) fell 10,000 units short of budgeted sales volume. Actual fixed costs were $53,000. With everything else held constant, what impact did the shortfall in volume have on profitability for the year?