The Next Year's Budget for Trend,Inc At the End of the Year,the Total Fixed Costs and Below

question 95

Multiple Choice

The next year's budget for Trend,Inc. ,a multi-product company,is given below: $$\begin{array} { | l | r | r | } \hline & \text { Product } A & \text { Product B } \\\hline \text { Sales } & \$ 1,890,000 & \$ 1,377,000 \\\hline \text { Variable costs } & 926,100 & 596,700 \\\hline \text { Fixed costs } & 500,000 & 500,000 \\\hline \text { Net income } & \underline{463,900} & \underline{280,300} \\\hline \text { Units } & 252,000 & 108,000 \\\hline\end{array}$$ At the end of the year,the total fixed costs and the variable costs per unit were exactly as budgeted,but the following units per product line were sold.Trend,Inc.analyzes the effects its sales variances have on the profitability of the company.

$$\begin{array} { | c | c | r | } \hline \text { Product Lines } & \text { Units } & \text { Sales } \\\hline \text { A } & 253,230 & \$ 1,848,579 \\\hline \text { B } & 113,770 & \$ 1,479,010 \\\hline\end{array}$$ What is the total sales price variance?

• A) $22,203.50.
• B) $28,442.50.
• C) $50,646.50.
• D) $79,088.50.

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Definitions:

Binge Eating Disorder

An eating disorder characterized by recurring episodes of eating large quantities of food in a short period, often to the point of discomfort, but without subsequent purging behaviors.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging to try and rid the body of unwanted calories.

Anorexia

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight or shape.

Bulimia

An eating disorder marked by binge eating followed by purging to prevent weight gain, often through vomiting or using laxatives.