Zhongfang Consumer Products Has a Small Car Division That Operates

question 128

Multiple Choice

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. $$\begin{array} { | l | r | r | r | r | r | l | } \hline & & & \text { Flexible Budget } & & & \\\hline &{ \text { Actual } } & \text { Flexible Budget } & \text { Variance } & \text { U/F } & \text { \% variance } & \text { U/F } \\\hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\\hline \text { Variable expenses } & 309,000 & 320,000 & & & & \\\hline \text { Contribution margin } & 379,000 & 380,000 & & & & \\\hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\\hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & & \\\hline\end{array}$$
- How much is the variance for division profit margin?

• A) $4,000 F
• B) $6,000 F
• C) $4,000 U
• D) $1,000 U

Identify factors contributing to undercoverage in statistical analyses.

Analyze market equilibrium and the effects of price changes on supply and demand balance.

Calculate markup percentage in retail pricing.

Determine breakeven points for businesses based on cost and revenue equations.

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Definitions:

Standard Deviation

A numerical metric that calculates the degree of spread or variability in a data set.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mode

The value that occurs most frequently in a given data set.

Lopsided

Uneven or unbalanced, often referring to situations or structures that are disproportionately weighted to one side.