In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $35,000U. The sales volume variance, in terms of operating income, for September was:
In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $79,000U; and, sales volume variance, in terms of contribution margin, $35,000U. The sales volume variance, in terms of operating income, for September was:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In September, Numbers Incorporated sold 50,000 units of its only product for $328,000, and incurred a total cost of $305,000, of which $33,000 was fixed costs. The flexible budget for September showed total sales of $380,000. Among variances of the period were: total variable cost flexible-
The sales volume variance, in terms of operating income, for September was:
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