The Alaska Fish Company completed the flexible budget analysis for the second quarter,which is given below. \(\begin{array}{|l|c|c|c|c|c|c|c|c|}
\hline & \begin{array}{l}
\text { Actual } \
\text { Results }
\end{array} & \begin{array}{c}
\text { Flexible } \
\text { Budget } \
\text { Variance } \
\end{array} && \begin{array}{l}
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array}{c}
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} && \begin{array}{c}
\text { Static } \
\text { Budget }
\end{array} \
\hline \text { Units } & \underline{12,820} & \underline{0} && \underline{12,820} & \underline{1020}& \underline{\mathrm{F}} & \underline{11,800} \
\hline \text { Sales Revenue } & \$ 62,730 & \$ 2478&{\mathrm{U}} & \$ 65,208 & \$ 5188 &\mathrm{F} & \$ 60,020 \
\hline \text { Variable Costs } & \underline{27,530} & \underline{108}&\underline{\mathrm{U}} & \underline{27,422} & \underline{\$ 2182} &\underline{\mathrm{U}} & \underline{25,240} \
\hline \text { Contribution Margin } & \$ 35,200 & \$ 2586&{\mathrm{U}} & \$ 37,786 & \$ 3006& \mathrm{F} & \$ 34,780 \
\hline \text { Fixed Costs } & \underline{34,290} & \underline{250}&\underline{\mathrm{U}} & \underline{34,040} & \underline{\$0}& & \underline{34,040} \
\hline \begin{array}{l}
\text { Operating } \
\text { income/(Loss) }
\end{array} & \underline{\$ 910} & \underline{\$2836}&\underline{\mathrm{U}} & \underline{\$ 3746} & \underline{\$ 3006}& \underline{\mathrm{F}} & \underline{\$740}\
\hline
\end{array}\) Which of the following statements would be a correct factor to explain the sales volume variance for operating income?

Question

The Alaska Fish Company completed the flexible budget analysis for the second quarter,which is given below. \(\begin{array}{|l|c|c|c|c|c|c|c|c|}
\hline & \begin{array}{l}
\text { Actual } \
\text { Results }
\end{array} & \begin{array}{c}
\text { Flexible } \
\text { Budget } \
\text { Variance } \
\end{array} && \begin{array}{l}
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array}{c}
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} && \begin{array}{c}
\text { Static } \
\text { Budget }
\end{array} \
\hline \text { Units } & \underline{12,820} & \underline{0} && \underline{12,820} & \underline{1020}& \underline{\mathrm{F}} & \underline{11,800} \
\hline \text { Sales Revenue } & \$ 62,730 & \$ 2478&{\mathrm{U}}  & \$ 65,208 & \$ 5188 &\mathrm{F} & \$ 60,020 \
\hline \text { Variable Costs } & \underline{27,530} & \underline{108}&\underline{\mathrm{U}}  & \underline{27,422} & \underline{\$ 2182} &\underline{\mathrm{U}} & \underline{25,240} \
\hline \text { Contribution Margin } & \$ 35,200 & \$ 2586&{\mathrm{U}}  & \$ 37,786 & \$ 3006& \mathrm{F} & \$ 34,780 \
\hline \text { Fixed Costs } & \underline{34,290} & \underline{250}&\underline{\mathrm{U}}  & \underline{34,040} & \underline{\$0}& & \underline{34,040} \
\hline \begin{array}{l}
\text { Operating } \
\text { income/(Loss) }
\end{array} & \underline{\$ 910} & \underline{\$2836}&\underline{\mathrm{U}} & \underline{\$ 3746} & \underline{\$ 3006}& \underline{\mathrm{F}} & \underline{\$740}\
\hline
\end{array}\) Which of the following statements would be a correct factor to explain the sales volume variance for operating income?

Quizplus · Accepted Answer

The sales volume variance for operating income is related to the actual sales volume achieved compared to the budgeted sales volume. An increase in sales volume would lead to a favorable sales volume variance, resulting in higher operating income. The other options (A, B, and D) could affect the overall operating income but would not directly explain the sales volume variance.

The Alaska Fish Company Completed the Flexible Budget Analysis for the Second