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Business, 05.05.2020 06:39 ryantrajean7
The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is given below.
Actual Flexible Budget Flexible Sales Volume Static
Results Variance Budget Variance Budget
Units 12,840 0 12,840 940 F 11,900
Sales Revenue $62,770 $ 2,023U $ 64,793 $ 4,743F $ 60,050
Variable Costs 27,560 315 U 27,245 $ 1,995 U 25,250
Contribution
Margin $ 35,210 $ 2,338 U $ 37,548 $ 2,748 F $ 34,800
Fixed Costs 34,210 170 U 34,040 $ 0 34,040
Operating Income
/(Loss) $ 1,000 $ 2,508 U $ 3,508 $ 2,748 F $ 760
Which of the following would be a correct factor to explain the sales volume variance for sales revenue?
A. increase in sales volume
B. increase in variable cost per unit
C. increase in sales price per unit
D. increase in fixed costs
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The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which is...
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