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Assume that the master budget for Cannondale shows total variable expenses of $10,000. The budget was based on production of 5,000 units. Cannondale sells all units it produces. Budgeted net income was $5,000. Actual production and sales was 4,500. What is the variable expense variance?
$5,000$4,500$500$1,000
2. Cannondale makes a certain part that it sells for $10 each. The variable costs are $6 per part. The annual fixed costs are $2,000. How many of this part must Cannondale sell to breakeven?
a. 333b. 200c. 1,000d. 500
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