If the Market-Size Variance Is $650 F, the Sales-Mix Variance

question 107

Multiple Choice

If the market-size variance is $650 F, the sales-mix variance is $500 F, the flexible budget variance is $9,250 F, and the static budget variance is $8,000 U, which of the following is true?

• A) The market share variance is $18,400 U.
• B) The sales volume variance is $17,250 F.
• C) The sales-quantity variance is $18,400 U.
• D) The sales volume variance is $17,750 U.
• E) The market share variance is $17,250 U.

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Definitions:

Capital

Financial assets or resources that businesses or individuals use to generate wealth through investment, production, or development.

Labor

The physical and mental effort used in the production of goods and services, often considered one of the primary factors of production.

Marginal Physical Product

The extra yield obtained by employing an additional unit of a variable factor, while keeping all other factors unchanged.

Total Revenue Product

The total revenue generated from the sale of goods or services produced from a specific input or resource.