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Question - Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:
Budget
Actual
Unit sales
Product X
22,500
42,000
Product Y
90,000
80,000
Unit contribution margin
$4.80
$3.90
$13.00
$14.00
Unit selling price
$30.00
$29.00
Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.
Required - Determine the total sales quantity variance?
A) $97,280 favorable.
B) $107,920 favorable.
C) $36,400 favorable.
D) $84,500 favorable.
E) $95,190 favorable.
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