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1 MERNA Manufacturing Company prepares master budget

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1 MERNA Manufacturing Company prepares master budget. If the sales volume variance was $16,000 Favorable and the static budget variance was $20,000 Favorable, then the flexible budget variance was ______.

Select one:
a. $36,000 Unfavorable
b. $4,000 Unfavorable
c. $36,000 Favorable
d. $4,000 Favorable

2 

ou are given the following information related to ABC company for the next year. Total fixed costs $840,000 Sale price per unit 80 Variable cost per unit 30 If ABC spends an additional $35,000 on advertising, sales volume would increase by 2500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of ABC?