Answer the Following Questions Using the Information Below:
the Tornado

question 129

Multiple Choice

Answer the following questions using the information below:
The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products:
$$\begin{array} { l r r } & \text { Standard } & \text { Supreme } \\\text { Bud geted sales in urits } & 4000 & 1000 \\\text { Bud geted selling price } & \$ 300 & \$ 850 \\\text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \\\text { Actual sales in units } & 3500 & 1500 \\\text { Actual selling price } & \$ 325 & \$ 840\end{array}$$
-More insight into the sales-quantity variance can be gained by subdividing it into:

• A)the sales-mix variance and the sales-volume variance.
• B)the flexible-budget variance and the sales-volume variance.
• C)a cost hierarchy.
• D)the market-share variance and the market-size variance.

---

Definitions:

Covert Collusion

Secret or concealed agreements between firms to fix prices, limit production, or divide markets, in order to increase profits illegally.

Demand Curve

A graphical representation of the demand schedule showing the inverse relationship between price and quantity demanded.

Oligopoly

A market structure characterized by a small number of firms that have significant control over market prices and competition.

Product Differentiation

The distinction between or among goods and services made in the minds of buyers.