Reference no: EM133010297
Question - Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed:
Product X Product Y Total
Sales $254,760 $352,000 $606,760
Variable Costs 196,476 140,800 337,276
Contribution Margin $58,284 $211,200 $269,484
Fixed costs 130,000 108,000 238,000
Operating Income (Loss) $(71,716) $103,200 $31,484
Selling Price per unit $120 $65
The following actual operating results were reported after the year was over:
Product X Product Y Total
Sales $361,600 $541,600 $903,200
Variable Costs 235,000 218,000 453,000
Contribution Margin $126,600 $323,600 $450,200
Fixed costs 140,000 110,000 250,000
Operating Income (Loss) $(13,400) $213,600 $200,200
Units Sold 1,500 8,500
Required - Determine the selling price variance for Product Y?