Prior to the beginning of the year a consulting firm

Reference no: EM13567034

The Sasita Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20X5 were as follows:

Static Budget ZENITH House-Helper Total

Number sold 5,000 20,000 25,000

Contribution margin $1,500,000 $3,000,000 $4,500,000

Actual Results ZENITH House-Helper Total

Number sold 4,000 28,000 32,000

Contribution margin $1,280,000 $3,920,000 $5,200,000

Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the ZENITH and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.

1.What is the total sales-volume variance in terms of the contribution margin?

$900,000 favorable
$1,260,000 favorable
$200,000 unfavorable
$360,000 unfavorable

2.What is the total sales-quantity variance in terms of the contribution margin?

$200,000 unfavorable
$900,000 favorable
$360,000 unfavorable
$1,260,000 favorable

Reference no: EM13567034

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