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Question - Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:
Budgeted
Actual Results
AB
CD
Price per bushel
$20
$10
$25
$12
Variable cost per bushel
$15
$5
$8
Sales (in bushels)
1,500
2,500
1,200
3,600
The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
Required - What is AB's contribution margin sales volume variance?
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