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Fanning planned to make and sell 20,000 copies of

the book.

Required:

a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 19,000 and 21,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 21,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

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B2
X
v f
a. - d.
A
B
C
D
E
F
G
H
a. - d.
master budget
flexible budgets
volume variances
number of units
20,000
19,000
21,000
sales revenue
$722,000
$685,900
$758,100
$36,100
F
variable...

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