Xerbert Co
Budgeted and Actual Income Statements
For the year Ending December 31
(000s omitted)
	Budgeted				Actual
	Xenox	Xeon	Total		Xenox	Xeon	Total
Units sales	150	100	250		130	130	260
Net Peso sales	P900	P1,000	P1,900		P780	P1,235	P2,015
Variable expenses	450	750	1,200		390	975	1,365
	P450	P 250	P 700		P390	P 260	P 650
Fixed expenses			P 200				P 190
Manufacturing			153				140
Marketing			95				90
Total fixed experience			P 448				P 420
Income before taxes			P 252				P 230

1. The percentage difference between the actual and budgeted breakeven point in units was that actual was

1. 5.00 % above budget.
2. 6.67 % below budget.
3. 6.67 % above budget.
4. 5.00 % below budget.

2. The budgeted total volume of 250,000 units was based upon Xerberts achieving a market share of 10%. Actual industry volume was 2,580,000 units. Xerbert increased volume owing to improved market share is

1. 100%
2. 80%
3. 20%
4. 4%

3. The variance of actual contribution margin from budgeted contribution margin attributed to sales price is

1. P155,000unfavorable.
2. P155,000favorable.
3. P65,000favorable.
4. P65,000unfavorable.

4. The variance of actual contribution margin from budgeted contribution margin attributed to unit variable cost changes is

1. P165,000unfavorable.
2. P137,000favorable.
3. P165,000unfavorable.
4. Zero because actual unit variable costs were the same as budgeted unit variable costs.