CHAPTER 11PRODUCT PRICING AND PROFIT ANALYSIS55841. Casablanca, Inc., has a practical production capacity of two million units, the currentyear's budget was based on the production and sales of 1.4 million units during the cur-rent year. Actual statistics came out to be: production of 1.44 million units and sales of1.2 million.. Selling price is at P20 each and the contribution margin ratio is 30%. Thepeso value that best quantifies the marketing division's failure to achieve budgetedperformance for the current year isP4,800,000 unfavorableb. P4,000,000 unfavorableа.P1,440,000 unfavorabled. P1,200,000 unfavorableС.(грера)42. The differences between the master budget amounts and the amounts in the flexiblebudget are due toActivity level variances.b. Gaps in affectivity.a.с.Favorable variances.d. Unfavorable variances.(грсра)

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duction capacity of two million units, th uction and sales of 1.4 million units durir co be: production of 1.44 million units an ach and the contribution margin ratio is marketing division's failure to achieve P1,440,000 unfavorable d. P1,200,000 unfavorable С.

duction capacity of two million units, th uction and sales of 1.4 million units durir co be: production of 1.44 million units an ach and the contribution margin ratio is marketing division's failure to achieve P1,440,000 unfavorable d. P1,200,000 unfavorable С.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

CHAPTER 11
PRODUCT PRICING AND PROFIT ANALYSIS
558
41. Casablanca, Inc., has a practical production capacity of two million units, the current
year's budget was based on the production and sales of 1.4 million units during the cur-
rent year. Actual statistics came out to be: production of 1.44 million units and sales of
1.2 million.. Selling price is at P20 each and the contribution margin ratio is 30%. The
peso value that best quantifies the marketing division's failure to achieve budgeted
performance for the current year is
P4,800,000 unfavorable
b. P4,000,000 unfavorable
а.
P1,440,000 unfavorable
d. P1,200,000 unfavorable
С.
(грера)
42. The differences between the master budget amounts and the amounts in the flexible
budget are due to
Activity level variances.
b. Gaps in affectivity.
a.
с.
Favorable variances.
d. Unfavorable variances.
(грсра)

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