Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed: Actual Results Variances Units Sales $150,000 $25,000 Favorable Variable Expenses 71,900 11,900 Unfavorable Fixed Expenses 75,200 200 Unfavorable Net Income (loss) $2,900 $12,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budget Flexible budget Actual Results Variances Units fill in the blank 1 fill in the blank 2 Sales $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Variable Expenses fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 Fixed Expenses fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Net Income (Loss) $fill in the blank 18 $fill in the blank 19 $fill in the blank 20 $fill in the blank 21
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed: Actual Results Variances Units Sales $150,000 $25,000 Favorable Variable Expenses 71,900 11,900 Unfavorable Fixed Expenses 75,200 200 Unfavorable Net Income (loss) $2,900 $12,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budget Flexible budget Actual Results Variances Units fill in the blank 1 fill in the blank 2 Sales $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Variable Expenses fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 Fixed Expenses fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Net Income (Loss) $fill in the blank 18 $fill in the blank 19 $fill in the blank 20 $fill in the blank 21
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. The following variances were observed:
| Actual Results | Variances | ||
| Units | |||
| Sales | $150,000 | $25,000 | Favorable |
| Variable Expenses | 71,900 | 11,900 | Unfavorable |
| Fixed Expenses | 75,200 | 200 | Unfavorable |
| Net Income (loss) | $2,900 | $12,900 | Unfavorable |
Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300).
| Static budget | Flexible budget | Actual Results | Variances | ||
| Units | fill in the blank 1 | fill in the blank 2 | |||
| Sales | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | |
| Variable Expenses | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | |
| Fixed Expenses | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | |
| Net Income (Loss) | $fill in the blank 18 | $fill in the blank 19 | $fill in the blank 20 | $fill in the blank 21 |
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