In the following question how can you assume that the budgeted sales are 220? Maybe my English is not the best but I dont get why it is understood that budgeted sales are 220k.
Bloom Limited was the subject of the following press story: Yellow sells two types of squash ball, the type A and the type B. The standard contribution from these balls is $4 and $5 respectively and the standard profit per ball is $1.50 and $2.40 respectively. The budget was to sell 5 type A balls for every 3 type B balls. Actual sales were up 20,000 at 240,000 balls with type A balls being 200,000 of that total. Yellow values its stock of balls at standard marginal cost. What is the value of the favourable sales quantity variance?