Ask Question
25 March, 15:50

The Carolina Products Company has completed the flexible budget analysis for the 2nd quarter, which is as given below. Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units/Volume 12 comma 840 0 12 comma 840 840 F 12 comma 000 Sales Revenue $ 62 comma 800 $ 1 comma 230 U $ 64 comma 030 $ 4 comma 030 F $ 60 comma 000 Variable Expenses 27 comma 570 590 U 26 comma 980 $ 1 comma 700 U 25 comma 280 Contribution Margin $ 35 comma 230 $ 1 comma 820 U $ 37 comma 050 $ 2 comma 330 F $ 34 comma 720 Fixed Expenses 34 comma 230 180 U 34 comma 050 $ 0 34 comma 050 Operating Income / (loss) $ 1 comma 000 $ 2 comma 000 U $ 3 comma 000 $ 2 comma 330 F $ 670 Which of the following would be a correct interpretation of the sales volume variance for sales revenues?

A.

increase in fixed costs

B.

increase in sales volume

C.

increase in variable cost per unit

D.

increase in sales price per unit

+1
Answers (1)
  1. 25 March, 18:58
    0
    Option B is correct one.

    Increase in sales volume

    Explanation:

    Sales variance is defined as the difference between the actual and budgeted sales Quantity. Therefore the variance is due to volume. Increase in sales volume is the correct interpretation of the sales volume variance for sales revenues.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Carolina Products Company has completed the flexible budget analysis for the 2nd quarter, which is as given below. Actual Results ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers