Winston Co $\text { On September 1, the following actual operating results for August were reported: }$

question 123

Multiple Choice

Winston Co. had two products code named X and Y. The firm had the following budget for August: $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 286,000 & \$ 520,000 & \$ 806,000 \\\text { Variable Costs } & 189,800 & 218,400 & 408,200\\\text { Contribution Margin } & \$ 96,200 & \$ 301,600 & \$ 397,800 \\\text { Fixed costs } & 50,000 & 108,000 & 158,000\\\text { Operating Income }&\$46,200&\$193,600&\$239,800\\\text { Selling Price per unit }&\$110.00&\$50.00\end{array}$

$\text { On September 1, the following actual operating results for August were reported: }$

$\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 360,000 & \$ 540,000 & \$ 900,000 \\\text { Variable Costs } & 195,000 & 216,000 & 411,000\\\text { Contribution Margin } & \$ 165,000 & \$ 324,000 & \$ 489,000 \\\text { Fixed costs } & 50,000 & 108,000 & 158,000 \\\text { Operating Income }&\$115,00&\$216,000&\$331,000\\\text { Units Sold }&3,000&9,000\end{array}$ Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The contribution margin sales volume variance for Product X is:

• A) $6,600 unfavorable.
• B) $8,300 favorable.
• C) $12,200 favorable.
• D) $12,200 unfavorable.
• E) $14,800 favorable.

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Definitions:

Slander of Title

A false and malicious statement that disparages a person's property rights, often leading to financial loss.

Injurious Falsehood

A legal claim involving the intentional spread of falsehoods about a person, business, or product, causing economic loss or damage to reputation.

Trade Libel

The publication of false statements about another’s product or business that causes economic loss, considered a form of defamation.

Trade Secret

Information, including formulas, practices, designs, instruments, or patterns, that is not generally known or readily ascertainable, and by which a business can obtain an economic advantage over competitors or customers.