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

question 61

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 Y is:

• A) $20,500 favorable.
• B) $16,000 unfavorable.
• C) $30,600 favorable.
• D) $40,600 unfavorable.
• E) $91,000 unfavorable.

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Definitions:

Agreement Approach

The Agreement Approach is a method used in negotiations where both parties work collaboratively to find a mutually acceptable solution.

Performance Pressures

The stress or demand placed on individuals or organizations to operate at an optimal level or achieve certain benchmarks.

Resistance to Change

Refers to the reluctance or refusal to adapt to changes in the workplace, environment, or technology.

Loss of Face

A term referring to the loss of respect, dignity, or social standing in the eyes of others, particularly in cultures that emphasize honor and reputation.