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The Real Estate Products Division of Oriole Co. is operated as a profit center. Sales for the division were budgeted for 2022 at $1,263,000. The
The Real Estate Products Division of Oriole Co. is operated as a profit center. Sales for the division were budgeted for 2022 at $1,263,000. The only variable costs budgeted for the division were cost of goods sold ($620,000) and selling and administrative ($85,000). Fixed costs were budgeted at $137,500 for cost of goods sold, $127,500 for selling and administrative costs, and $100,000 for noncontrollable fixed costs. Actual results for these items were as follows: Sales Cost of goods sold Variable Fixed Selling and administrative Variable Fixed Noncontrollable fixed $1,189,995 552,500 152,500 92,000 105,000 110,000
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