Nap CoHas Two Products Named X and Y

question 105

Multiple Choice

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The contribution margin sales volume variance for Product Y is:

• A)$0
• B)$16,000 favorable.
• C)$30,000 unfavorable.
• D)$10,000 unfavorable.
• E)$5,000 favorable.

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Definitions:

Price Elasticity of Demand

A gauge of demand elasticity in reaction to price adjustments for a particular commodity.

Unity

In economic terms, unity can refer to a sense of agreement or cohesion among members of a market or organization, striving towards common goals or values.

Inelastic

Characterizes a condition in which the demand for a good or service is relatively unresponsive to changes in its price.