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What Is the Flexible Budget Contribution Margin A) $39,000

question 27

Multiple Choice

What is the flexible budget contribution margin? $\begin{array}{|l|r|r|r|r|r|}\hline & \begin{array}{r}\text { Actual } \\\text { Results }\end{array} & \begin{array}{r}\text { Flexible } \\\text { Vudget }\end{array} & \begin{array}{r}\text { Flexible } \\\text { Budget }\end{array} & \begin{array}{r}\text { Variance } \\\text { Activity }\end{array} & \begin{array}{r}\text { Master } \\\text { Budget }\end{array} \\\hline \text { Units } & 13,000 & & ? & 2000 \mathrm{U} & ? \\\hline \text { Sales revenue } & ? & 13,000 \mathrm{~F} & ? & ? & ? \\\hline \begin{array}{l}\text { Less: }\end{array} & & & & \\\hline \begin{array}{l}\text { Variable mfg. } \\\text { Costs }>\end{array} & \$ 87,750 & & \$ 91,000 & ? & \$ 105,000 \\\hline \begin{array}{l}\text { Variable } \\\text { mktgiadm.costs }>\end{array} & ? & \$ 3,250 \cup & ? & \$ 4,000 \mathrm{~F} & 30,000 \\\hline \begin{array}{l}\text { Contribution } \\\text { margin }\end{array} & \$ 52,000 & ? & ? & \$ 6,000 \mathrm{U} & ? \\\hline\end{array}$

Learn the external reporting requirements for costing methods.

Understand the differences between accrual accounting and cash flow, and the impact on reported income.

Identify and classify activities as operating, investing, or financing in the context of cash flow statements.

Calculate dividends paid to shareholders based on changes in retained earnings and net income.

Definitions:

Computational Formula

Formula that is an algebraic manipulation of a definitional formula designed to minimize the complexity of mathematical calculations.

Variance

The average of the squared differences from the Mean, a statistical measurement of the spread between numbers in a data set.

Computational Formula

A formula used to compute statistical measures that often simplifies the arithmetic process.

Variance

A measure of the dispersion or how spread out numbers are in a dataset.