17. What is the unit selling price? $20 per unit $30 per unit O $41 per unit O $50 per unit None of the above 18. What is the amount of variable administrative expenses for April 2021? * O $225,000
17. What is the unit selling price? $20 per unit $30 per unit O $41 per unit O $50 per unit None of the above 18. What is the amount of variable administrative expenses for April 2021? * O $225,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
Transcribed Image Text:The net operating income reported by
Erin Company in March 2021
amounted to $10,000, however, it
decreased by $40,000 in April 2021,
ending up with a loss. Besides, Erin
Company is a retail company, and its
management has provided the
following-additional information for
April 2021.
tem
Amsunt
Sales Volume
75.000 unita
Unit Selling Price
Tetal Coribution Margin
$1.500,000
Variable Cot of Goods Sed
S00.000
Variable Selling Expenses per Unit
Variahle Administrative Epees
$9 per unit
Fisod Selling Expon
Fixed Administrative Expenses 25% of Total Administrative Expenses)
77
Contribution Margin Ratie
40%
17. What is the unit selling price?
$20 per unit
$30 per unit
$41 per unit
O $50 per unit
O None of the above
18. What is the amount of
variable administrative expenses
for April 2021? *
O $225,000
O $675,000
O $900,000
$1,305,000
O None of the above
O O O O O
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