The Bradley Company has just completed its first year of operations. A condensed income statement follows, showing actual and standard amounts and the variances:

Required:
The president of Bradley Company has asked you as controller for the following data:
a. How much of the variance in income was due to the fact that we sold less than expected of Product B and more of Product A?
b. What would have happened to income if we had produced the number of units expected?
c. What would have happened to the total gross margin variance if we had sold the number of units of both A and B that we expected to sell, but at the actual selling prices per unit?
d. What is the variance due to the fact that actual selling prices were less than expected? (Product A sold for $5.50 per unit.)

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Income Statement (000 Omitted) Standard Actual Variance Sales Cost of goods sold at standard Manufacturing varlances Gross margin General and administrative expense Income 52,718.7 1,984.0 (19.0) 715.7 57.0 $2,852.0 1,984.0 868.0 66.5 $152.3 801.5 658.7 9.5 $142.8 Other Data Pertinent to First-Year Operations Raw materials variances Direct labor variances Both products have standard $20,900 F 3,800 F Overhead variances: Volume Spending $47,300 U 3,600 F unit costs of $4.00 Marketing Data Standard Selling Price per Unit $5.90 5.50 Expected Sales Actual Units Sold Product A Product EB in Units $300,000 200,000 310,000 186,000