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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

   Actual   Flexible   Static
   Results   Budget   Budget
Sales volume (in units)   10,000         12,500

Sales revenues   $500,000   $   $625,000
Variable costs   256,000   $ ________   300,000

Contribution margin   244,000   $   325,000

Fixed costs   229,000   $ ________   225,000
Operating profit   $ 15,000   $       $ 100,000

The primary reason for low operating profits was ________.
A) the variable-cost variance
B) increased fixed costs
C) a poor management accounting system
D) lower sales volume than planned
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
wrote...
#3
9 years ago
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