Zephyr Enterprises projected current year sales of 60,000 units at a unit sale price of $25.00. Actual current year sales were 65,000 units at $27.00 per unit. Actual variable costs, budgeted at $18.00 per unit, totaled $16.50 per unit. Budgeted fixed costs totaled $500,000, while actual fixed costs amounted to $520,000. What is the sales volume variance for total revenue? correct answer

Zephyr Enterprises projected current year sales of 60,000 units at a unit sale price of $25.00. Actual current year sales were 65,000 units at $27.00 per unit. Actual variable costs, budgeted at $18.00 per unit, totaled $16.50 per unit. Budgeted fixed costs totaled $500,000, while actual fixed costs amounted to $520,000. What is the sales volume variance for total revenue? correct answer

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...

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Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
What is the sales volume variance for total revenue?
What is the sales volume variance for total revenue on these accounting question?
Planned sales are 10,000 units at $7.00 per unit. Actual sales are 11,000 units at $6.50 per unit. Which of the following statements is not true? a. The revenue volume variance is favorable. b. The total revenue variance is unfavorable. c. The revenue volume variance is $7,000. d. The revenue price variance is unfavorable.
Classics, Ltd., details cars. Classics wants to compare this quarter’s results with those for last quarter, which is believed to be typical for operations. Assume that the following information is provided. Last Quarter This Quarter Number of detailings 440 523 Revenues $ 72,160 $ 68,800 Variable costs 27,920 31,920 Contribution margin $ 44,240 $ 36,880 Required: a. Compute the flexible budget and sales activity variance and prepare a profit variance analysis. (Hint: Use last quarter as the master budget and this quarter as “actual.”) b. What impact did the changes in number of detailings and average revenues (i.e., sales price) have on Classics, Ltd.’s contribution margin?
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What was the sales price variance for the year on these financial accounting question?
Calculate the sales price and sales volume variance?
Management believes it can sell a new product for $6.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $2.50 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0 $ $ $ $ $ 500 $ $ $ $ $ 1,000 $ $ $ $ $ 1,500 $ $ $ $ $ 2,000 $ $ $ $ $ 2,500 $ $ $ $ $ 3,000 $ $ $ $ $ Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs,…
For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $603,500. Required: 1. Compute the anticipated break-even sales (units).fill in the blank 1 units 2. Compute the sales (units) required to realize a target profit of $298,200.fill in the blank 2 units 3. Construct a cost-volume-profit chart, assuming maximum sales of 17,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $1,689,800 $1,505,200 $1,207,000 $908,800 $724,200 4. Determine the probable income (loss) from operations if sales total 13,600 units. If required, use the minus sign to indicate a loss.$fill in the blank 8
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