Wheat Inc Has an Exclusive Contract with an Exporter

question 110

Multiple Choice

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is the firm's total sales quantity variance?

• A) $0.
• B) $3,500 unfavorable.
• C) $4,000 favorable.
• D) $37,500 favorable.
• E) $50,000 favorable.

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Definitions:

Kraft Lunchables

A brand of prepackaged, convenience meal kits aimed primarily at schoolchildren, containing portions of cheese, meats, crackers, and beverages.

Prepackaged Meal

A meal that has been prepared, packaged, and sold in a ready-to-eat form.

Discovering Consumer Needs

The process of researching and understanding the requirements, desires, or problems of consumers to develop products or services that meet these needs.

New Products

Innovations or items that have been recently introduced to the market, offering fresh options to consumers.