Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 240,000 $ 510,000 $ 750,000 Variable Costs 117,600 295,800 413,400 Contribution Margin $ 122,400 $ 214,200 $ 336,600 Fixed costs 8,000 100,000 108,000 Operating Income $ 114,400 $ 114,200 $ 228,600 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 364,000 $ 540,000 $ 904,000 Variable Costs 200,000 221,000 421,000 Contribution Margin $ 164,000 $ 319,000 $ 483,000 Fixed costs 8,000 100,000 108,000 Operating Income $ 156,000 $ 219,000 $ 375,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The selling price variance for Product Y is: Multiple Choice $35,000 favorable. $50,000 unfavorable. $90,000 unfavorable. $90,000 favorable. $43,200 unfavorable.
Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 240,000 $ 510,000 $ 750,000 Variable Costs 117,600 295,800 413,400 Contribution Margin $ 122,400 $ 214,200 $ 336,600 Fixed costs 8,000 100,000 108,000 Operating Income $ 114,400 $ 114,200 $ 228,600 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 364,000 $ 540,000 $ 904,000 Variable Costs 200,000 221,000 421,000 Contribution Margin $ 164,000 $ 319,000 $ 483,000 Fixed costs 8,000 100,000 108,000 Operating Income $ 156,000 $ 219,000 $ 375,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The selling price variance for Product Y is: Multiple Choice $35,000 favorable. $50,000 unfavorable. $90,000 unfavorable. $90,000 favorable. $43,200 unfavorable.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Q13
Winston Company had two products code named X and Y. The firm had the following budget for August:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 240,000 | $ 510,000 | $ 750,000 |
| Variable Costs | 117,600 | 295,800 | 413,400 |
| Contribution Margin | $ 122,400 | $ 214,200 | $ 336,600 |
| Fixed costs | 8,000 | 100,000 | 108,000 |
| Operating Income | $ 114,400 | $ 114,200 | $ 228,600 |
| Selling Price per unit | $ 100 | $ 50 |
On September 1, the following actual operating results for August were reported:
| Product X | Product Y | Total | |
|---|---|---|---|
| Sales | $ 364,000 | $ 540,000 | $ 904,000 |
| Variable Costs | 200,000 | 221,000 | 421,000 |
| Contribution Margin | $ 164,000 | $ 319,000 | $ 483,000 |
| Fixed costs | 8,000 | 100,000 | 108,000 |
| Operating Income | $ 156,000 | $ 219,000 | $ 375,000 |
| Units Sold | 3,000 | 9,000 |
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The selling price variance for Product Y is:
Multiple Choice
-
$35,000 favorable.
-
$50,000 unfavorable.
-
$90,000 unfavorable.
-
$90,000 favorable.
-
$43,200 unfavorable.
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