However, when you reached the end of 2017 the actual sales figures turned out to be different: Quarter I - 10,000 units Quarter II - 35,000 units Quarter III - 12,000 units Quarter IV - 30,000 units And the actual Income Statement showed the following values: Income statement 2017 Sales 2,784,000 CoGS 2,241,213 Gross Margin 542,787 S&A expenses 576,750 Operating Income -33,963 Interest expense 16,632 Income -50,595 Compare the budgeted Income Statement with the actual one. Prepare the Flexible Budget for 2017 and find out why you have such Income variance. Recommend a way to improve the financial situation.

Answer rating: 100% (QA)

Comparing Budgeted vs Actual Income Statement 2017 CategoryBudgetedActualVariance Sales36000002784000816000 Unfavorable Cost of Goods Sold COGS2880000... View the full answer