The Company's Sales-Volume Variance Is

question 40

Multiple Choice

The company's sales-volume variance is:

• A)$3,000 unfavorable.
• B)$4,000 unfavorable.
• C)$4,400 favorable.
• D)$10,000 unfavorable.
• E)$10,000 favorablE.

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Definitions:

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Break-Even

The point at which total costs and total revenues are equal, meaning no net loss or gain, and the business is just covering all its expenses.

Fixed Expenses

Costs that remain constant for a given period regardless of the level of production or sales volume.

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.