Marsh, Inc Calculate the Sales Volume Variance

question 126

Multiple Choice

Marsh, Inc. provides the following information: $$\begin{array} { | l | c | c | c | c | } \hline & \text { Actual Sales } & \text { Static Budget } & \text { Flexible Budget } & \text { Sales Volume Variance } \\\hline \text { Sales Revenue } & \$ 560,000 & \$ 535,000 & \$ 450,000 & ? \\\hline\end{array}$$ Calculate the sales volume variance.

• A) 25,000 F
• B) 25,000 U
• C) $85,000 U
• D) $110,000 F

---

Definitions:

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales volume.

Transfer Price

The price charged for goods or services transferred between divisions or branches of the same company.

Pump Division

A designated segment of a business focused on the production or sales of pumps.

Pool Products Division

A segment within a company focused on the development, production, and sales of products related to swimming pools.