Howard Consumer Products Has a Small Car Division That Operates

question 68

Essay

Howard Consumer Products has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter.Complete the responsibility report.(Round percentages to one decimal place.)
Howard Consumer Products
Responsibility Report
$$\begin{array} { | l | r | r | r | r | } \hline { \begin{array} { c } \text { Product } \\ \text { Type }\end{array} } & \begin{array} { c } \text { Actual } \\\text { Results }\end{array} & \begin{array} { c } \text { Flexible } \\\text { Budget }\end{array} & \begin{array} { c } \text { Flexible Budget } \\\text { Variance } \\\text { (F or U) }\end{array} & \begin{array} { c } \text { Sales Volume } \\\text { Variance }\end{array} \\\hline \text { Sales Revenue } & \$ 688,200 & \$ 700,000 & & \\\hline \text { Variable Expense } & \underline { 309,000 } & \underline { 320,000 } & & \\\hline \text { Contribution Margin } & & & & \\\hline \text { Traceable Fixed Expense } & \underline { 371,000 } & \underline { 369,000 } & & \\\hline \text { Divisional Segment Margin } & & & & \\\hline \end{array}$$

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Definitions:

Capital

Assets or resources that are used in the production of goods and services, including physical assets like machinery and buildings, as well as financial resources.

Marginal Revenue Product

The extra revenue generated by employing an additional unit of a factor, such as labor or capital.

Perfect Competitor

A theoretical market structure where numerous small firms sell identical products, and no single seller can influence the market price.

Monopolist

A monopolist is a sole provider of a good or service in a market, having the power to influence the price and quantity of the product.