Yogurt Yoghurt Yogurte sells every flavor of yogurt. Each flavor of yogurt is a separate division with toppings making up an additional division. The following information for the Heavenly Marshmallow flavor division was compiled for the prior period: Actual Results 500 Sales Volume (Units) Sales Revenue $2,725 Variable Manufacturing Costs $600 Variable Operating Costs $400 Fixed Manufacturing Costs Fixed Operating Costs $500 $600 Master Budget 800 $4,200 $1,080 $600 $550 $650 QUESTION 1: Assuming variances are separately calculated for each line item listed above, which of the following statements is incorrect? A. The actual unit sales price is $0.20 greater than the budgeted unit sales price. B. If the materiality threshold is $25, three volume variances should be investigated. C. The total variable cost variance under the flexible budget variance is a favorable variance of $50. D. The Heavenly Marshmallow product line is considered a profit center. OE. We can assume all master budget variances will be unfavorable because the sales revenue master budget variance is unfavorable. QUESTION 2: What is the total operating income under the Flexible Budget? A. $825 B. $4,875 C. $1,320 D. $250 OE. $375