Answer the Following Questions Using the Information Below:
Contrafic Corporation

question 137

Multiple Choice

Answer the following questions using the information below:
Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each and used a budgeted selling price of $21 per unit.
$$\begin{array} { l r r } & \underline { \text { Actual } } & \text { Budgeted } \\\text { Units sold }& 180,000 \text { units } & 185,000 \text { units } \\\text { Variable costs } & \$ 1,080,000 & \$ 1,295,000 \\\text { Fixed costs }&\$ 800,000 & \$ 775,000\end{array}$$
-What is the static-budget variance of operating income?

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Definitions:

Tariff

A tax levied on goods imported into a country.

Imported Steel

Steel that is produced in one country and brought into another for use in manufacturing or construction.

Domestic Industry

Industries within a country’s borders that produce goods or services for the local economy.

Public Choice Analysis

is a field of economics that applies economic reasoning to political science, analyzing government actions in terms of economic efficiency and individual behaviors.