Jackson, Inc

question 54

Multiple Choice

Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.
Total sales quantity variance is:

• A) $36,400 favorable.
• B) $84,500 favorable.
• C) $95,190 favorable.
• D) $97,280 favorable.
• E) $107,920 favorable.

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Definitions:

Tax Effects

The impact of taxation on an individual's or company's financial decisions or situations, especially regarding how investments and financial strategies are structured.

Liquidity Analysis

An examination of a company's ability to meet its short-term obligations with its current assets.

Cash Budget

A schedule showing cash flows (receipts, disbursements, and cash balances) for a firm over a specified period.

Quick Ratios

A measure of a company's ability to meet its short-term obligations with its most liquid assets, providing insights into financial health.