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Katsu,IncHas a Small Car Division That Operates as a Profit

question 112

Multiple Choice

Katsu,Inc.has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter.  Responsibility Report  Actual  F1exible  Budget  Flexible  Budget  Variance  U/F  Percentage  Variance  U/F  Sales  Revenue $688,000$700,000 Variable  Expenses 309,000322,000 Contribution  Margin 379,000378,000 Traceable  Fixed  Expenses 372,000369,000 Division  Margin $7000$9000\begin{array}{l}\text { Responsibility Report }\\\begin{array} { | c | c | c | c | c | c | c | } \hline & \text { Actual } & \begin{array} { c } \text { F1exible } \\\text { Budget }\end{array} & \begin{array} { c } \text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Percentage } \\\text { Variance }\end{array} & \text { U/F } \\\hline \begin{array} { c } \text { Sales } \\\text { Revenue }\end{array} & \$ 688,000 & \$ 700,000 & & & & \\\hline \begin{array} { c } \text { Variable } \\\text { Expenses }\end{array} & \underline { 309,000 } & \underline { 322,000 } & & & & \\\hline \begin{array} { c } \text { Contribution } \\\text { Margin }\end{array} & 379,000 & 378,000 & & & & \\\hline \begin{array} { c } \text { Traceable } \\\text { Fixed }\end{array} & & & & & & \\\text { Expenses } & \underline { 372,000 } & \underline { 369,000 } & & & & \\\hline \begin{array} { c } \text { Division } \\\text { Margin }\end{array} & \underline { \$ 7000 } & \underline { \$ 9000 } & & & & \\\hline\end{array}\end{array}
Compute the percentage variance for the flexible budget variance for sales revenue.(Round your answer to two decimal places.)


Definitions:

1960s

A decade marked by significant social, political, and cultural change worldwide, including movements for civil rights and against the Vietnam War in the United States.

Technological Progress

Innovations and improvements in technology that can lead to more efficient production methods and economic growth.

Factor of Production

Inputs used in the production of goods or services to make an economic profit, including land, labor, capital, and entrepreneurship.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.

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