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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 4,000 5,600 10,000 9,300 Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530 Variable costs 3,200 5,600 10,000 9,770 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170 Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360   The net effect of AR-10's sales volume variance on profit is:     Multiple Choice   $4,960 favorable.   $5,660 favorable.   $7,330 favorable.   $8,030 favorable.   $9,920 favorable.     THE ANSWER IS NOT 8030 and I am not sure why

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 4,000 5,600 10,000 9,300 Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530 Variable costs 3,200 5,600 10,000 9,770 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170 Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360   The net effect of AR-10's sales volume variance on profit is:     Multiple Choice   $4,960 favorable.   $5,660 favorable.   $7,330 favorable.   $8,030 favorable.   $9,920 favorable.     THE ANSWER IS NOT 8030 and I am not sure why

FINANCIAL ACCOUNTING
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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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 4,000 5,600 10,000 9,300
Sales $ $ 28,000 $ 15,120 $ 20,000 $ 19,530
Variable costs 3,200 5,600 10,000 9,770
Fixed Costs 1,800 1,900 2,400 2,400
Total Costs $ 5,000 $ 7,500 $ 12,400 $ 12,170
Operating income $ 23,000 $ 7,620 $ 7,600 $ 7,360

 

The net effect of AR-10's sales volume variance on profit is:

 

 

Multiple Choice
  •  

    $4,960 favorable.

  •  

    $5,660 favorable.

  •  

    $7,330 favorable.

  •  

    $8,030 favorable.

  •  

    $9,920 favorable.

     

     

    THE ANSWER IS NOT 8030 and I am not sure why

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