Question
Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $
Winston Company had two products code named X and Y. The firm had the following budget for August:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 286,000 | $ 520,000 | $ 806,000 |
| Variable Costs | 189,800 | 218,400 | 408,200 |
| Contribution Margin | $ 96,200 | $ 301,600 | $ 397,800 |
| Fixed costs | 50,000 | 108,000 | 158,000 |
| Operating Income | $ 46,200 | $ 193,600 | $ 239,800 |
| Selling Price per unit | $ 110.00 | $ 50.00 |
On September 1, the following actual operating results for August were reported:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 360,000 | $ 540,000 | $ 900,000 |
| Variable Costs | 195,000 | 216,000 | 411,000 |
| Contribution Margin | $ 165,000 | $ 324,000 | $ 489,000 |
| Fixed costs | 50,000 | 108,000 | 158,000 |
| Operating Income | $ 115,000 | $ 216,000 | $ 331,000 |
| Units Sold | 3,000 | 9,000 |
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's total sales quantity variance for the period is:
A. $16,000 unfavorable.
B. $24,660 unfavorable.
C. $66,375 unfavorable.
D. $30,600 unfavorable.
E. $34,800 unfavorable.
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Introduction To Finance Financial Management And Investment Management
Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi
1st Edition
9811239657, 978-9811239656
