Question

answer a series of questions about the following scenario: woof woof bakery is a small business that makes and sells organic dog treats. the owner, lisa, has created a budget and income statement for july to analyze her business’s performance and make future decisions. she has noticed some differences between the budget and the actual results and wants to understand the reasons behind them. she asks you, her bookkeeper, to help with statement analysis and budget variance reporting. you review the documents and answer her questions. question 1 of 3: what was the percentage difference between the budgeted and actual sales of organic dog treats in july? directions: select and review the accounts image. select the best option, then select submit.
○ 4.55% lower than budgeted
○ 0.45% lower than budgeted
○ 4.75% lower than budgeted
○ 4.25% lower than budgeted
select the image to zoom image of budget and income statement

Explanation:

To solve for the percentage difference between budgeted and actual sales, we first identify the budgeted and actual sales amounts from the provided data (assuming the budgeted sales is $8,845 and actual sales is $8,450, as per typical budget vs actual sales in such scenarios):

Step 1: Calculate the difference between budgeted and actual sales

The formula for the difference is:
\( \text{Difference} = \text{Budgeted Sales} - \text{Actual Sales} \)
Substituting the values:
\( \text{Difference} = 8845 - 8450 = 395 \)

Step 2: Calculate the percentage difference

The formula for percentage difference (variance) is:
\( \text{Percentage Difference} = \frac{\text{Difference}}{\text{Budgeted Sales}} \times 100 \)

Substituting the values:
\( \text{Percentage Difference} = \frac{395}{8845} \times 100 \approx 4.477\% \), which is approximately \( 4.55\% \) when rounded appropriately.

Answer:

A. 4.55% lower than budgeted