Answer the Following Question(s)using the Information Below

question 127

Multiple Choice

Answer the following question(s) using the information below:
Zorro Company manufactures remote control devices for garage doors.The following information was collected during June:

-If the market-size variance is $400 U and the sales-mix variance is $700 F, and the market share variance is $300 F, we know that which of the following is TRUE?

• A)The sales-quantity variance is $100 F.
• B)The market-share variance is $300 F.
• C)The sales-quantity variance is $100 U, and the sales volume variance is $600 F.
• D)The sales-volume variance is $600 U.
• E)The sales-volume variance is $600 F, and the sales-quantity variance is $100 F.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Vertical Analysis

A technique in financial statement analysis where each entry for each of the three major categories (assets, liabilities, and equities) is represented as a proportion of the total account.

Financial Condition

An assessment of an entity's ability to manage its money, including assets, liabilities, and equity, reflecting its financial health and stability.

Market Prospects

The potential for future sales growth or business expansion based on current market trends, consumer behavior, and economic conditions.