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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
21,900
45,000
Product Y
91,000
77,000
Unit contribution margin
$4.10
$3.40
$15.00
$17.00
Unit selling price
$30.00
$20.00
Industry volume was estimated to be 1,886,000 units at the time the budget was prepared. Actual industry volume for the period was 2,300,000 units. Jackson measures variances using contribution margin.
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