This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?
Bloom Limited was the subject of the following press story:?
“Bloom is proud to announce that it has managed to maintain its market share despite an?overall increase in the market size by 10%.”? However, the sales director when challenged,?by this journalist recently admitted having been forced to reduce prices by $1.50 per bunch?on average on a budget volume of? 12,000 bunches.? All is not as rosy as it seems in Bloom’s?garden!
?If the standard variable cost of a bloom bunch of flowers is $20 and the standard?contribution gained is $5 what is the favourable sales volume variance??