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The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. Sales volume (in units) Sales revenues Variable costs Contribution margin Fixed costs Operating profit ActualResults FlexibleBudget 13,000 $715,000 286,000 $429,000 275,000 $154,000 StaticBudget 16,000 $880,000 354,720 $525,280 270,800 $254.480 The flexible budget will report for the fixed costs. O A. $220,025 OB. $338,462 OC. $270,800 OD. $354,720
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