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Danner Fashions sells a line of women's dresses. Danner's performance report for November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.
Actual Budget
Dresses sold 6,200 7,440
Sales $365,800 $550,560
Variable costs (179,800) (223,200)
Contribution margin $186,000 327,360
Fixed Costs (120,000) (104,000)
Operating income $ 66,000 $ 223,360
Question 1: The sales price variance for November is
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