The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
None
Transcribed Image Text:The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below.
Units
Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income/(Loss)
Flexible
Budget
Sales
Volume
Actual Results
Variance
Flexible Budget
Variance
12,840
0
12,840
1,040 F
Static Budget
11,800
$62,700
$2,686
U
$65,386
$5,296 F
$60,090
27,580
72 U
27,508
$2,228 U
25,280
$35,120
$2,758 U
$37,878
$3,068
F
$34,810
34,290
280 U
34,010
$0
34,010
$830
$3,038 U
$3,868
$3,068 F
$800
Which of the following statements would be a correct factor to explain the sales volume variance for operating income?
OA. increase in variable cost per unit
OB. increase in sales volume
OC. increase in fixed costs
OD. decrease in sales price per unit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education