Four Flags is a retail department store. On January 1, 2012, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2012:Cost Fixed Variable (per unit sold)
Cost of Goods Sold $0 $5.20
Selling and Promotion Expense $200,000 $0.80
Building occupancy Expense $190,000 $0.20
Buying Expense $160,000 $0.40
Delivery Expense $115,000 $0.05
credit and Collection Expense $70,000 $0.03
Expected unit sales in 2012 were 1,200,000, and 2012 total revenue was expected to be $12,000,000. Actual 2012 unit sales turned out to be 1,000,000, and total revenue was $10,000,000. Actual total costs in 2012 were:
| Cost of Goods Sold |
$6,000,000 |
| Selling and Promotion Expense |
$1,100,000 |
| Building Occupancy Expense |
$440,000 |
| Buying Expense |
$660,000 |
| Delivery Expense |
$190,000 |
| Credit and Collection Expense |
$25,000 |