Question
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results.
ActualFlexibleStatic
ResultsBudgetBudget
Sales volume (in units)12,00015,000
Sales revenues$600,000$$750,000
Variable costs307,200$ ________360,000
Contribution margin292,800$ _______390,000
Fixed costs274,800$ ________270,000
Operating profit$ 18,000$_$ 120,000
Flexible budget will report ________ for variable costs.
Question options:
$360,000
$384,000
$245,760
$288,000
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