Duo, Inc., carries two products and has the following year-end income statement (000s omitted):Product AR-10Product ZR-7Budget Actual7,4006,900$14,4907,2502,400$9,650$ 4,840Actual3,800$10,2603,8001,900$4,770$ 5,700Operating income $11,430 $ 4,560 $ 5,000UnitsSales $Variable costsFixed CostsTotal CostsBudget2,700$16, 2002,9701,800Multiple ChoiceThe net effect of AR-10's sales volume variance on profit is:$14,8007,4002,400$ 9,800$5,390 favorable. Multiple ChoiceOO$5,390 favorable.$3,070 favorable.$3,980 favorable.$4,350 favorable.$2,700 favorable.

Sales volume variance measures the impact of actual units sold differing from the expected sales…

Answered: The net effect of AR-10's sales volume…

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

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Chapter1: Financial Statements And Business Decisions

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Question

Duo, Inc., carries two products and has the following year-end income statement (000s omitted):
Product AR-10
Product ZR-7
Budget Actual
7,400
6,900
$14,490
7,250
2,400
$9,650
$ 4,840
Actual
3,800
$10,260
3,800
1,900
$4,770
$ 5,700
Operating income $11,430 $ 4,560 $ 5,000
Units
Sales $
Variable costs
Fixed Costs
Total Costs
Budget
2,700
$16, 200
2,970
1,800
Multiple Choice
The net effect of AR-10's sales volume variance on profit is:
$14,800
7,400
2,400
$ 9,800
$5,390 favorable.

Multiple Choice
O
O
$5,390 favorable.
$3,070 favorable.
$3,980 favorable.
$4,350 favorable.
$2,700 favorable.

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