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Question - Strauss Table Company manufacturers tables for schools. The 2006 operating budget is based on sales of 20,000 units at $100 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $64 per unit, while fixed costs total $600,000. Actual income for 2006 was a surprising $354,000 on actual sales of 21,000 units at $104 each. Actual variable costs were $60 per unit and fixed costs totaled $570,000.
Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.
Decrease Net Cash from operations on the Cash Flow Statement
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