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

question 111

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 selling price variance for Product Y is:

• A) $90,000 favorable.
• B) $43,200 unfavorable.
• C) $90,000 unfavorable.
• D) $35,000 favorable.
• E) $50,000 unfavorable.

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Definitions:

Tort

An act that is wrongful under civil law, leading to harm or loss for another individual, which results in the perpetrator being legally responsible.

Classification

The process of arranging or categorizing items into different groups based on shared qualities or characteristics.

Tort

A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability.

Public Wrong

Acts or offenses that violate laws established to protect the public and maintain social order, dealt with through criminal justice system.