Answer the Following Questions Using the Information Below

question 35

Multiple Choice

Answer the following questions using the information below:
The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows:

-What is the total flexible-budget variance in terms of the contribution margin?

• A)$900,000 favorable
• B)$700,000 favorable
• C)$200,000 unfavorable
• D)$360,000 unfavorable

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Definitions:

Emission Reduction

The process of diminishing the amount of pollutants released into the environment, particularly relevant in efforts to combat climate change.

Efficient Recycling

The process of collecting, processing, and reusing materials in the most cost-effective and environmentally friendly manner.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Scrap Disposal

The process of getting rid of waste materials that are produced during manufacturing or consumption.