Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,500 kits was prepared for the year. Fixed operating expenses account for 60% of total operating expenses at this level of sales. Sales $ 75,000 Cost of goods sold (all variable) 45,000 Gross margin 30,000 Operating expenses 26,250 Operating income $ 3,750 Assume that Concord Sports actually sold 1,575 volleyball kits during the year at a price of $36 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Flexible Budget Sales Volume Variance Static Budget Unit Sales UnfavorableNot ApplicableFavorable Sales revenue $ $ Not ApplicableUnfavorableFavorable $ Cost of goods sold FavorableUnfavorableNot Applicable
Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,500 kits was prepared for the year. Fixed operating expenses account for 60% of total operating expenses at this level of sales. Sales $ 75,000 Cost of goods sold (all variable) 45,000 Gross margin 30,000 Operating expenses 26,250 Operating income $ 3,750 Assume that Concord Sports actually sold 1,575 volleyball kits during the year at a price of $36 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Flexible Budget Sales Volume Variance Static Budget Unit Sales UnfavorableNot ApplicableFavorable Sales revenue $ $ Not ApplicableUnfavorableFavorable $ Cost of goods sold FavorableUnfavorableNot Applicable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,500 kits was prepared for the year. Fixed operating expenses account for 60% of total operating expenses at this level of sales.
| Sales | $ | 75,000 | ||
| Cost of goods sold (all variable) |
|
45,000 | ||
| Gross margin | 30,000 | |||
| Operating expenses |
|
26,250 | ||
| Operating income | $ | 3,750 |
Assume that Concord Sports actually sold 1,575 volleyball kits during the year at a price of $36 per kit.
Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
| Flexible Budget | Sales Volume Variance | Static Budget | ||||||
| Unit Sales |
|
|
UnfavorableNot ApplicableFavorable
|
|
||||
| Sales revenue | $
|
$
|
Not ApplicableUnfavorableFavorable
|
$
|
||||
| Cost of goods sold |
|
|
FavorableUnfavorableNot Applicable
|
|
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