Calculate the sales volume variance for operating income

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Reference no: EM132055833

Western Outfitters Mountain Sports projected 2008 sales of 75,000 units at a unit sale price of $12.00. Actual 2008 sales were 72,000 units at $14.00 per unit. Actual variable costs, budgeted at $4.00 per unit, totaled $4.75 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $400,000. What is the sales volume variance for total revenue?

	$108,000
	$144,000
	$42,000
	$36,000

The following information pertains to Bright Toy Company's operating activities for 2009. The company sells light box toys and sold 10,000 units in 2009. What is the cost of goods sold for 2009?

Purchases	$126,000
Selling and Administrative Expenses	90,000
Merchandising inventory, 1/1/2009	14,000
Merchandising inventory, 12/31/2009	10,000
Sales Revenue	250,000

	$104,000
	$140,000
	$130,000
	$124,000

A March sales forecast projects that 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory of 1,000 units. How much are total March sales for Product A anticipated to be?

	$130,000
	$132,000
	$156,000
	$110,000

Global Engineering's actual operating income for the current year is $50,000. The flexible budget operating income for actual volume achieved is $40,000, while the static budget operating income is $53,000. What is the sales volume variance for operating income?

	$13,000
	$10,000
	$10,000
	$13,000

Fairfield Company management has budgeted different amounts for its next fiscal year.If Fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. What effect will this decision have on operating income?

Total fixed expenses	$832,500
Sale price per unit	$40
Variable expenses per unit	$25

	Operating income will increase $70,000
	Operating income will increase $37,500.
	Operating income will increase $7,500.
	Operating income will decrease $62,500

The net sales for a company were $3,600,000; gross profit was $600,000; and net income was $260,000. The rate of return on net sales would be:

	0.4333.
	0.1667.
	0.0722.
	0.2389.

Reference no: EM132055833

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