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Business, 16.09.2021 14:00 hopeschr2019
A manufacturing company prepares income statements using both absorption and variable costing methods. At the end of a period actual sales revenues, total gross profit, and total contribution margin approximated budgeted figures, whereas net income was substantially greater than the budgeted amount. There were no beginning or ending inventories. The most likely explanation of the net income increase is that, compared to budget, actual:.
a. Manufacturing fixed costs had increased.
b. Selling and administrative fixed expenses had decreased.
c. Sales prices and variable costs had increased proportionately.
d. Sales prices had declined proportionately less than variable costs.
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