Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies.The sales office is a revenue center and prepares a monthly responsibility report.The partially completed responsibility report is provided.

\begin{array}{l}\text { Revenue Center Respansibility Repart }\\\begin{array} {| c | r | r | l | r | r | r | r |} \hline \begin{array} { c } \text { Product } \\\text { Type }\end{array} & \begin{array} { c } \text { Actual } \\\text { Sales } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Flexible } \\\text { Budget }\end{array} & \begin{array} { c } \text { Sales } \\\text { Volume } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Static } \\\text { Budget }\end{array} \\\hline 40 \text { inch } & \$ 31,500 & & & \$ 30,500 & & & \$ 40,800 \\\hline 36 \text { inch long } & 40,200 && & 42,000 & & & 33,100 \\\hline 36 \text { inch short } & 36,200 && & 33,200 & && 30,000 \\\hline \text { 32 inch } & 19,100 & && 19,700 & && 28,450\\\hline\end{array}\end{array}

The company uses management by exception to address flexible budget variances.On which product type would the company first focus?
A) 40 inch
B) 36 inch long
C) 36 inch short
D) 32 inch

A Company's "Climate for Action" Is a Corporate Culture ________

Multiple Choice

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