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

question 108

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 quantity variance?

• A) $3,570.00.
• B) $20,815.00.
• C) $33,915.00.
• D) $40,553.50.

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Definitions:

Monthly Sales

The total revenue generated from the sale of goods or services within a single month.

Sales Commissions

Payments made to sales personnel or agents, usually calculated as a percentage of the sales they directly generate.

Marketing Manager

A professional role responsible for developing, implementing, and overseeing marketing strategies and campaigns to promote a company's products or services.

Monthly Sales

The total revenue generated from goods or services sold by a business within a month.