Question. Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static
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Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,300 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.
Sales | $ | 230,000 | ||
Cost of goods sold (all variable) | 144,900 | |||
Gross margin | 85,100 | |||
Operating expenses | 70,000 | |||
Operating income | $ | 15,100 |
Assume that Bonita Sports actually sold 2,000 volleyball kits during the year at a price of $102 per kit.
Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Flexible Budget | Sales Volume Variance | Static Budget | ||||||
---|---|---|---|---|---|---|---|---|
Unit Sales | enter a number of units | enter a number of units | select an option Not Applicable Favorable Unfavorable | enter a number of units | ||||
Sales revenue | $enter a dollar amount | $enter a dollar amount | select an option Not Applicable Favorable Unfavorable | $enter a dollar amount | ||||
Cost of goods sold | enter a dollar amount | enter a dollar amount | select an option Favorable Unfavorable Not Applicable | enter a dollar amount |
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