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Impact Window Company makes storm-resistant windows. The company's sales manager estimated the sales volume to be 160,000 windows. Due to the increased hurricane activity this year, the total demand for this type of window increased from 800,000 windows to 1,000,000 windows. At the same time the company's market share fell from 20 percent to 15 percent. The company's standard contribution margin is $15.00 per window. What is the company's sales activity variance?   Multiple Choice   $200,000 favorable   $150,000 favorable   None of these.   $200,000 unfavorable   $150,000 unfavorable

Impact Window Company makes storm-resistant windows. The company's sales manager estimated the sales volume to be 160,000 windows. Due to the increased hurricane activity this year, the total demand for this type of window increased from 800,000 windows to 1,000,000 windows. At the same time the company's market share fell from 20 percent to 15 percent. The company's standard contribution margin is $15.00 per window. What is the company's sales activity variance?   Multiple Choice   $200,000 favorable   $150,000 favorable   None of these.   $200,000 unfavorable   $150,000 unfavorable

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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Impact Window Company makes storm-resistant windows. The company's sales manager estimated the sales volume to be 160,000 windows. Due to the increased hurricane activity this year, the total demand for this type of window increased from 800,000 windows to 1,000,000 windows. At the same time the company's market share fell from 20 percent to 15 percent. The company's standard contribution margin is $15.00 per window. What is the company's sales activity variance?

 

Multiple Choice
  •  
    $200,000 favorable
  •  
    $150,000 favorable
  •  
    None of these.
  •  
    $200,000 unfavorable
  •  
    $150,000 unfavorable
 
 
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