Use the Information Below to Answer the Following Question(s)

question 109

Multiple Choice

Use the information below to answer the following question(s) .Special Tea Products (STP) has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the STP total flexible-budget variance for revenues?

• A)$50 favourable
• B)$50 unfavourable
• C)$900 favourable
• D)$800 favourable
• E)$250 unfavourable

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Definitions:

Percent Higher

A measure or calculation showing how much one value is increased compared to another, expressed as a percentage.

Stock

Equity investments representing ownership in a corporation, giving holders a claim on part of the company's assets and earnings.

Percent

A part per hundred, used to express ratios, proportions, or comparison between quantities.

Faster

Often used to describe a process or method that reduces the amount of time needed to achieve a particular result.