Answer the Following Questions Using the Information Below:
Bathurst Company

question 157

Multiple Choice

Answer the following questions using the information below:
Bathurst Company manufactures remote control devices for garage doors.The following information was collected during June:
$$\begin{array} { l r } \text { Actual market size (urits) } & 10000 \\\text { Actual market share } & 32 \% \\\text { Actual average selling price } & \$ 10.00 \\\text { Budgeted market size (units) } & 11000 \\\text { Budgeted market share } & 30 \% \\\text { Budgeted average selling price } & \$ 11.00 \\\text { Budgeted contribution margin per } & \\\text { composite unit for budgeted mix } & \$ 4.00\end{array}$$
-What is the sales-quantity variance?

• A)$800 F
• B)$1200 U
• C)$400 U
• D)The variance cannot be determined.

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Definitions:

Price Control

Government regulations that set the maximum or minimum prices for specific goods and services to control inflation or ensure affordability.

Binding

A condition, especially in legal or contractual contexts, that obliges entities to act according to the terms of an agreement or rule.

Labor Shortage

A situation in which employers believe there are insufficient qualified candidates to fill job vacancies, impacting the pace and cost of business operations.

Binding Minimum Wage

A government-set wage floor that is above the equilibrium level, leading to potential surpluses in the labor market, such as unemployment.