Flexible-Budget Variances and Sales Volume Variances RTI Company’s master budget calls for production and sale of 18,000 units for $81,000, variable costs of $30,600, and fixed costs of $20,000....

Flexible-Budget Variances and Sales Volume Variances RTI Company’s master budget calls for production and sale of 18,000 units for $81,000, variable costs of $30,600, and fixed costs of $20,000. During the most recent period, the company incurred $32,000 of variable costs to produce and sell 20,000 units for $85,000. During this same period, the company earned $25,000 of operating income.

Required

1. Determine the following for RTI Company (Round all answers to the nearest whole dollar): a. Flexible-budget operating income. b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)? c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?  d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?  e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?  2. Explain why the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical. 3. Explain why the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.