23-7 - 2,530,500 b) The actual operating income was worst...

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Actual Flexible Budget Net Sales 10,500,000 10,500,000 COGS 6,180,000 6,300,000 Gross Profit on Sales 4,320,000 4,200,000 Operating Expenses: Selling and Promotion 1,020,000 861,000 Building occupancy 420,000 231,000 Buying 594,000 420,000 Delivery 183,000 105,000 Credit and Collection 90,000 21,000 Administrative 564,000 31,500 Total Operating expenses 2,871,000 1,669,500 Operating income 1,449,000
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Unformatted text preview: 2,530,500 b) The actual operating income was worst than budgeted by $1,081,500. This result can be administrative costs as well as the building occupancy, if compared to the flexible budget Over (or under) Budget-120,000 120,000 159,000 189,000 174,000 78,000 69,000 532,500 1,201,500-1,081,500 atributed to the high t costs....
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23-7 - 2,530,500 b) The actual operating income was worst...

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