Jackson,Inc Manufactures Two Products That It Sells to the Same

question 55

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:

Profitable

A financial condition where income exceeds expenses resulting in a net gain.

Accounting Equation

The fundamental formula in accounting that states that assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the business.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.