Question
The Washington Fish Company completed the flexible budget analysis for the second quarter, which is given below. Actual Results Flexible Budget Variance Flexible Budget Sales
The Washington Fish Company completed the flexible budget analysis for the second quarter, which is given below.
Actual Results | Flexible Budget Variance | Flexible Budget | Sales Volume Variance | Static Budget | |||
Units | 12 comma 89012,890 | 00 | 12 comma 89012,890 | 1 comma 0901,090 | F | 11 comma 80011,800 | |
Sales Revenue | $ 62 comma 700$62,700 | $ 1 comma 330$1,330 | U | $ 64 comma 030$64,030 | $ 3 comma 990$3,990 | F | $ 60 comma 040$60,040 |
Variable Costs | 27 comma 62027,620 | 710710 | U | 26 comma 91026,910 | $ 1 comma 640$1,640 | U | 25 comma 27025,270 |
Contribution Margin | $ 35 comma 080$35,080 | $ 2 comma 040$2,040 | U | $ 37 comma 120$37,120 | $ 2 comma 350$2,350 | F | $ 34 comma 770$34,770 |
Fixed Costs | 34 comma 26034,260 | 250250 | U | 34 comma 01034,010 | $ 0$0 | 34 comma 01034,010 | |
Operating Income/(Loss) | $ 820$820 | $ 2 comma 290$2,290 | U | $ 3 comma 110$3,110 | $ 2 comma 350$2,350 | F | $ 760$760 |
Which of the following statements would be a correct analysis of the sales volume variance for operating income?
A.
increase in sales volume
B.
decrease in sales price per unit
C.
increase in fixed costs
D.
increase in variable cost per unit
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