Calculate the contribution margin variance

Reference no: EM133611047

Question: Arlinghaus, Inc., produces and sells two types of recliners. Model R is a simple model, with a manual lever for operating the footrest. Model RX is a more complex model, with a motorized footrest. Budgeted and actual data for the two models are as follows: Budgeted Amounts: Model R Model RX Total Sales ($250 × 2,000) $500,000 ($500 × 500) $250,000 $750,000 Variable expenses 1,50,000 1,75,000 3,25,000 Contribution margin $350,000 $75,000 $425,000 Actual Amounts: Model R Model RX Total Sales ($250 × 1,750) $437,500 ($500 × 550) $275,000 $712,500 Variable expenses 1,25,000 1,50,000 2,75,000 Contribution margin $312,500 $125,000 $437,500 Calculate the contribution margin variance. a. $37,500

Reference no: EM133611047

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Calculate the contribution margin variance : Contribution margin $312,500 $125,000 $437,500 Calculate the contribution margin variance. a. $37,500

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