Duo,IncCarries Two Products and Has the Following Year-End Income Statement

question 98

Multiple Choice

Duo,Inc.carries two products and has the following year-end income statement (000s omitted) :
The net effect of AR-10's sales volume variance on profit is:

• A)$720 favorable.
• B)$817 favorable.
• C)$1,060 favorable.
• D)$1,160 favorable.
• E)$1,440 favorable.

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Definitions:

Cancellation

Cancellation refers to the act of terminating or ending a contract, an agreement, or a service before it is completed or takes effect.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate an investment.

Capital

Financial assets or resources that individuals, companies, or governments use to fund their operations or invest.

Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.