Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following static budget is provided: Per Unit Total Sales $ 80 $ 1,040,000 Less variable costs: Manufacturing costs 40 520,000 Selling and administrative costs
The following static budget is provided:
Per Unit | Total | |
---|---|---|
Sales | $ 80 | $ 1,040,000 |
Less variable costs: | ||
Manufacturing costs | 40 | 520,000 |
Selling and administrative costs | 20 | 260,000 |
Contribution margin | $ 20 | $ 260,000 |
Less fixed costs: | ||
Manufacturing costs | 61,000 | |
Selling and administrative costs | 121,000 | |
Total fixed costs | 182,000 | |
Net income | $ 78,000 |
What will be the overall volume variance if 10,000 units are produced and sold?
Multiple Choice
$36,000 F
$138,000 U
$60,000 U
$36,000 U
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started