Onyx Company Prepared a Static Budget at the Beginning of the Month

question 13

Essay

Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows:
Static budget: Sales volume: 1,000 units Price: $70 per unit
Variable expense: $32 per unit Fixed expenses: $37,500 per month
Operating income: $500
Actual results: Sales volume: 990 units Price: $74 per unit
Variable expense: $35 per unit Fixed expenses: $33,000 per month
Operating income: $5,610
Using the format below, please prepare an income statement performance report:

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Definitions:

Winning Strategy

A plan or approach designed to achieve victory or success in a competition, conflict, or challenging situation.

No-Win Issues

Topics or challenges that cannot be satisfactorily resolved, often leading to outcomes that satisfy no party fully.

Fuzzy Positions

Vague or unclear stances on issues, often intentionally, to avoid alienating potential supporters.

Expert Audiences

Specific groups of individuals with advanced knowledge or skills in a particular domain or field.