Sargent.Com plans to sell 2,000 purple lawn chairs during May, 1,900 in June, and 2,000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Sargent.Com produce during June?

1,915
2,200
1,885
Not enough information to determine.

A variance that results from expected economic conditions that do not materialize is called what?
Sales variance
Planning variance
Economic variance
Material variance

A static budget is appropriate in evaluating a manager's performance if _______________.
actual activity closely approximates the master budget activity
actual activity is less than the master budget activity
the company prepares reports on an annual basis
the company is a not-for-profit organization

If costs are not responsive to changes in activity level, how are they best described?
Mixed
Flexible
Variable
Fixed

Using the high-low method, what is the unit variable cost for the following information?
Month Miles Total Cost
January 80,000 $96,000
February 50,000 $80,000
March 70,000 $94,000
April 90,000 $130,000

$1.44
$1.25
$1.60
$1.50.