The Next Year's Budget for Trend, Inc At the End of the Year, the Total Fixed Costs

question 79

Multiple Choice

The next year's budget for Trend, Inc., a multi-product company, is given below: $\begin{array}{lrrrr}&\text { Product A } & \text { Product B }\\\text { Sales } & \$ 1,890,000 & \$ 1,377,000 \\\text { Variable costs } & 926,100 & 596,700 \\\text { Fixed costs } & \underline{500,000} & \underline{ 500,000} \\ \text { Net income } & \underline{ \underline{ 463,900 }}& \underline{ \underline{ 280,300}} \\ \text { Units } & 252,000 & 108,000\end{array}$
At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Trend, Inc. analyzes the effects its sales variances have on the profitability of the company.
$$\begin{array} { c c c } \text { Product Lines } & \text { Units } & \text { Sales } \\\text { A } & 2 5 3 , 2 3 0 & \$ 1 , 8 4 8 , 5 7 9 \\\text { B } & 113,770& \$ 1 , 4 7 9 , 0 1 0 \end{array}$$
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Is the total sales quantity variance favorable or unfavorable?

• A) Favorable
• B) Unfavorable

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Definitions:

Literature

Written works, especially those considered of superior or lasting artistic merit, encompassing fiction, non-fiction, poetry, and other forms.

Summative Evaluation

An assessment conducted at the end of a program or course to determine its overall effectiveness or achievements.

Causal Evaluation

An assessment method that aims to determine the cause-and-effect relationship between two variables, often used to measure the impact of interventions or programs.

Organizations

Entities comprising multiple people working together towards a common goal, characterized by structured systems and processes.