Flexible BudgetSales Volume VarianceStatic BudgetUnitSalesSales242$revenueCost ofgoodssold%24 Marigold Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on salesof 3,000 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.Sales$ 300,000Cost of goods sold (all variable)180,000Gross margin120,000Operating expenses40,000Operating income$80,000Assume that Marigold Sports actually sold 2,700 volleyball kits during the year at a price of $102 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for theamounts.)

A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Answered: Marigold Sports sells volleyball kits…

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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