The Actual Margin Per Unit and Margin Per Unit Estimated

question 9

Multiple Choice

The actual margin per unit and margin per unit estimated in the plan are $6 and $8,respectively.The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units,respectively.What is the margin variance of the business?

• A)-$10,000
• B)$10,000
• C)-$20,000
• D)$20,000
• E)$5,000

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.

Accumulated Depreciation

The total amount of depreciation that has been recorded against a fixed asset over its useful life, reducing its book value.

Loss of $1,000

A financial term indicating that an entity has incurred a negative financial result, specifically being $1,000 less than initially accounted for or expected.

Impairment Loss

A reduction in the book value of an asset when its fair market value falls below its carrying amount on the balance sheet, indicating a permanent decline in value.