68 A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40. Costs include rent of $5,000; payments to hairstylists of $20 per customer; and overhead of $10 per customer. In June, the salon had 1,050 customers, and the net income was $8,000. What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results? O This net income shows a favorable $2,500 variance. This net income shows an unfavorable $2,500 variance. O This net income shows a favorable $2,000 variance. O This net income shows an unfavorable $2,000 variance.

68 A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June. The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40. Costs include rent of $5,000; payments to hairstylists of $20 per customer; and overhead of $10 per customer. In June, the salon had 1,050 customers, and the net income was $8,000. What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results? O This net income shows a favorable $2,500 variance. This net income shows an unfavorable $2,500 variance. O This net income shows a favorable $2,000 variance. O This net income shows an unfavorable $2,000 variance.

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Description: 68A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June.The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40.Costs include rent of $5,000; payments t

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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