Danner Fashions Sells a Line of Women's Dresses -
the Sales Price Variance for November Is:
A) $30,000

question 137

Multiple Choice

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. $\begin{array}{lcccc}&&\text { Actual}&&\text { Budget }\\ \text { Dresses sold } & & \underline{ 5,000} & & \underline{ 6,000 }\\ \text { Sales } & \$ & 235,000 & \$ & 300,00 \\ \text { Variable costs } & & \underline{(145,000) }& & \underline{(180,000) }\\ \text { Contribution margin } & & \$90,000 & & 120,000 \\\text { Fixed Costs } & & \underline{ (84,000) } & & \underline{ (80,000) } \\ \text { Operating income } &\$& \underline{ \underline{ 6,000 }}&\$& \underline{ \underline{ \$ 40,000}} \\ \end{array}$
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The sales price variance for November is:

Understand the concept of non-substitutability and its role in reinforcing an individual's or unit's power within an organization.

Understand the foundational components and applications of Harold Kelley's Attribution Theory.

Recognize the impacts of reward and punishment on organizational behaviour and performance.

Describe the benefits and processes involved in mentoring relationships within organizations.

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Definitions:

Marginal Cost

The increase or decrease in the total cost of a production run for making one additional unit of an item.

Zero Marginal Cost

The situation when producing an additional unit of a good or service does not increase the total cost of production, often associated with digital products or services.

Pushcart

A small cart or wheeled vehicle typically used by vendors for selling goods in public places.

Output

The quantity of goods or services produced in a given period of time by a firm, industry, or country.