Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.
Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q7
Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted):
| Product |
Product ZR-7 | |||
|---|---|---|---|---|
| Budget | Actual | Budget | Actual | |
| Units | 2,600 | 3,600 | 7,200 | 6,700 |
| Sales $ | $ 13,000 | $ 9,720 | $ 14,400 | $ 14,070 |
| Variable costs | 2,860 | 3,600 | 7,200 | 7,040 |
| Fixed Costs | 1,800 | 1,900 | 2,400 | 2,400 |
| Total Costs | $ 4,660 | $ 5,500 | $ 9,600 | $ 9,440 |
| Operating income | $ 8,340 | $ 4,220 | $ 4,800 | $ 4,630 |
The net effect of AR-10's sales volume variance on profit is:
Multiple Choice
-
$2,880 favorable.
-
$1,950 favorable.
-
$3,900 favorable.
-
$3,150 favorable.
-
$2,220 favorable.
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