Quantity variance in terms of budgeted contribution margin

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Reference no: EM1376588

The XTRA Appliance Manufacturing Corporation manufactures 2 vacuum cleaners, the Standard and the Super. The subsequent information was gathered about the two products:

Standard Super
Budgeted sales in units 3,200 800
Budgeted contribution margin per unit $420 $1,100
Budgeted selling price $600 $1,700
Actual sales in units 3,500 1,500
Actual selling price $650 $1,680

Find the total sales-quantity variance in terms of budgeted contribution margin?
A) $220,000 favorable
B) $340,000 favorable
C) $556,000 favorable
D) $896,000 favorable

Reference no: EM1376588

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