Multiple ChoiceO$1,160 favorable.$817 favorable.$1,440 favorable.$720 favorable.$1,060 favorable TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, IncorporatedDuo, Incorporated, carries two products and has the following year-end income statement (000s omitted)Product ZR-7UnitsSales $Variable costsProduct AR-10Multiple ChoiceBudget2,000$ 6,0002,4001,800$4,200$ 1,800Actual2,800$ 7,5602,8001,900$4,700$ 2,860Fixed CostsTotal CostsOperating incomeThe net effect of AR-10's sales volume variance on profit is:Budget6,000$ 12,0006,0002,400$ 8,400$ 3,600Actual5,600$ 11,7605,8802,400$ 8,280$ 3,480

Variable cost Depends upon the production of goods or services that is increment of sales increases…

TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted) Units Sales $ Variable costs Fixed Costs Total Costs Operating income Product AR-10 Multiple Choice Budget 2,000 $6,000 2,400 1,800 $4,200 $ 1,800 Actual 2,800 $ 7,560 2,800 1,900 $4,700 $2,860 The net effect of AR-10's sales volume variance on profit is: Product ZR-7 Budget 6,000 $ 12,000 6,000 2,400 $ 8,400 $3,600 Actual 5,600 $ 11,760 5,880 2,400 $8,280 $3,480

TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted) Units Sales $ Variable costs Fixed Costs Total Costs Operating income Product AR-10 Multiple Choice Budget 2,000 $6,000 2,400 1,800 $4,200 $ 1,800 Actual 2,800 $ 7,560 2,800 1,900 $4,700 $2,860 The net effect of AR-10's sales volume variance on profit is: Product ZR-7 Budget 6,000 $ 12,000 6,000 2,400 $ 8,400 $3,600 Actual 5,600 $ 11,760 5,880 2,400 $8,280 $3,480

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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