Answer the Following Questions Using the Information Below:
Some of Bondi

question 18

Multiple Choice

Answer the following questions using the information below:
Some of Bondi Appliances financial data has been misplaced.Use the following information to replace the lost data:
$\begin{array}{|c|c|c|c|c|c|}\hline &\text { Actual } & \text { Flexible-Budget } & \text { Flexible } & \text { Sales-Volume } & \text { Static } \\&\text { Results } & \text { Variances } & \text { Budget } & \text { Variances } & \text { Budget }\\\hline \text { Units sold } & 225000 & & 225000 & & 206250 \\\hline \text { Revenues } & \$ 84160 & \$ 2000 \mathrm{~F} & \text { (A) } & \$ 2800 \mathrm{U} & (B) \\\hline \begin{array}{l}\text { Variable } \\\text {costs }\end{array} & \text { (C) } & \$ 400 \mathrm{U} & \$ 31720 & \$ 4680 \mathrm{~F} & \$ 36400 \\\hline \text { Fixed costs } & \$ 16560 & \$ 1720 \mathrm{~F} & \$ 18280 & 0 & \$ 18 280\\\hline \begin{array}{l}\text { Operating } \\\text { profit }\end{array} & \$ 354 & \text { (D) } & 332160 & \text { (E) } & \$20280\\\hline\end{array}$

-What are the actual variable costs (C) ?

• A)$31 320
• B)$32 120
• C)$27 040
• D)$36 400

---

Definitions:

Negative Cumulative Cash Surplus

A financial situation where the cumulative cash flows from a project or business are negative, indicating a deficit.

Borrowing Need

The necessity for an individual or organization to raise funds through loans or debt issuance to finance its operations or investments.

Costs Of Placing An Order

Expenses associated with ordering inventory, including administrative costs, shipping, handling, and procurement costs, critical in managing inventory levels.

Shortage Cost

Costs incurred from not having enough inventory or resources to meet demand, including lost sales and dissatisfied customers.