Sun-Bright Fixtures Company Is Evaluating a Change in Operating Income

question 6

Multiple Choice

Sun-Bright Fixtures Company is evaluating a change in operating income between 2012 and 2013.Management has compiled the following data:

Required
Compute the operating incomes for 2012 and 2013 and the change in operating income.Identify whether the change is a favorable change,F,or an unfavorable,U,variance.

• A)2011=$2,890,000 and 2012=$4,360,200;$985,000;U
• B)2011=$3,725,000 and 2012=$4,360,000;$635,000;U
• C)2011=$3,940,000 and 2012=$4,500,000;$1,850,00;F
• D)2011=$1,030,000 and 2012=$1,000,000;$30,000;U
• E)2011=$1,000,000 and 2012=$1,030,000;$30,000;F

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