(Appendix 11A) Kyekyeku Company Retails Two Models of a Product

question 73

Multiple Choice

(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year:

-(Appendix 11A) What was the market volume variance for last year?

• A) $18,375.00 favourable.
• B) $19,687.50 favourable.
• C) $21,875.00 favourable.
• D) $21,875.00 unfavourable.

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Definitions:

Monthly Sales

The total revenue a business generates from selling its goods or services within a specific month.

Net Operating Income

Earnings before interest and taxes (EBIT); a measure of a company's profitability from its regular, core operations.

Unit Variable Cost

The variable cost associated with producing one additional unit of product.

Net Operating Income

A company's revenue minus its direct and indirect operating expenses, excluding taxes and interest, reflecting the profitability of its core business activities.