Answer the Following Questions Using the Information Below:
as Part

question 9

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\& & & \\\text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\\text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\\text { Contribution margin } & 103500 & \$ & 70000 \\& & & \\\text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\\text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500\end{array}$

-The PRIMARY reason for high actual operating profits was:

• A)lower sales volume than planned.
• B)higher sales volume than planned.
• C)the variable-cost variance.
• D)increased fixed costs.

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Definitions:

Wagner Act

A foundational statute in United States labor law that guarantees the right of private sector workers to organize into trade unions, engage in collective bargaining, and take collective action.

Union Power

The influence labor unions have over working conditions, wages, and benefits for their members through negotiation and collective action.

United Food and Commercial Workers

A labor union representing workers in the retail food, meatpacking, food processing, and related industries, focusing on improving working conditions and wages.

California Unionized Supermarkets

Supermarkets in California that have their workforce represented by labor unions, impacting wage levels, working conditions, and labor-management relations.