The static budget, at the beginning of the month, for Onyx Décor Company, follows: Static budget: Sales volume: 1,100 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $38,000 per month Operating income: $3,800 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $34,200 per month Operating income: $5,000 Calculate the flexible budget variance for sales revenue.

Respuesta :

Answer:

The flexible budget variance for sales revenue are 30 Units.

Explanation:

It means that with this cost structure the company still could have lower sales until 950 Units and still keep the result forecasted in the Budget.

   Variance

      BDGT  -  REAL  -  REAL

Sales 1.100  -   980   -   950  

Unit          $70  -     $75   -   $75  

Cost   $32  -    $35   -   $35

==============================  

    $41.800   $39.200  $38.000  

Fixed     -$38.000  -$34.200 -$34.200  

Result  $3.800   $5.000     $3.800