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IrinaK [193]
3 years ago
13

Gridiron Merchandising anticipated selling 30,000 units of a major product and paying sales commissions of $8 per unit. Actual s

ales and sales commissions totaled 30,500 units and $253,100, respectively. If the company used a flexible budget for performance evaluations, Gridiron would report a cost variance of:
A. $9,100U.

B. $9,100F.

C. $13,100U.

D. $13,100F.

E. None of these.
Business
1 answer:
madam [21]3 years ago
8 0

Answer:

C. $13,100U.

Explanation:

The cost variance is given by the difference between the actual cost of commissions and the projected cost of commissions of 30,000 units at $8 each:

V = \$253,100-(\$8*30,000)\\V=\$ 13,100\ U

Since the actual cost is higher than the anticipated cost, the balance is unfavorable.

Gridiron would report a cost variance of: C. $13,100U.

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Freeze Ice Cream Shop sells its specialty shakes for $3.50 each. In the summer months, the shop typically sells 200 shakes a day
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As a result of the demand increasing only slightly compared to the reduction in price, the demand must be <u>inelastic</u>.

<h3>Why is the demand inelastic?</h3><h3 />

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Find out more on inelastic demand at brainly.com/question/1899986.

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