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Question - 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 2019 were as follows:
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.
Required - What is the total flexible-budget variance in terms of the contribution margin?
a. $700,000 F
b. $900,000 F
c. $360,000 U
d. $500,000 F
e. $200,000 U
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