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Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens-the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Sales: ($96 x 25,000) ($155 x 16,500) Variable expenses Contribution margin Actual Amounts: Sales: ($84 x 25,500) ($161 x 12,500) Variable expenses Contribution margin Required: Toaster Oven Unfavorable $2,400,000 465,000 $1,935,000 Toaster Oven $2,142,000 570,400 $1,571,600 Convection Oven ✓ $2,557,500 700,000 $1,857,500 Convection Oven $2,012,500 658,900 $1,353,600 Total $4,957,500 1,165,000 $3,792,500 Total $4,154,500 1,229,300 Required: 1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. 1.3 X per unit 2. Calculate the contribution margin volume variance. $2,925,200

Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens-the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Sales: ($96 x 25,000) ($155 x 16,500) Variable expenses Contribution margin Actual Amounts: Sales: ($84 x 25,500) ($161 x 12,500) Variable expenses Contribution margin Required: Toaster Oven Unfavorable $2,400,000 465,000 $1,935,000 Toaster Oven $2,142,000 570,400 $1,571,600 Convection Oven ✓ $2,557,500 700,000 $1,857,500 Convection Oven $2,012,500 658,900 $1,353,600 Total $4,957,500 1,165,000 $3,792,500 Total $4,154,500 1,229,300 Required: 1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. 1.3 X per unit 2. Calculate the contribution margin volume variance. $2,925,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens-the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Sales: ($96 x 25,000) ($155 x 16,500) Variable expenses Contribution margin Actual Amounts: Sales: ($84 x 25,500) ($161 x 12,500) Variable expenses Contribution margin Required: Toaster Oven $2,400,000 Unfavorable 465,000 $1,935,000 Toaster Oven $2,142,000 570,400 $1,571,600 2. Calculate the contribution margin volume variance. Convection Oven ✓ $2,557,500 700,000 $1,857,500 Convection Oven $2,012,500 658,900 $1,353,600 Total $4,957,500 1,165,000 $3,792,500 Required: 1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. 1.3 X per unit Total $4,154,500 1,229,300 $2,925,200
Transcribed Image Text:Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens-the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Sales: ($96 x 25,000) ($155 x 16,500) Variable expenses Contribution margin Actual Amounts: Sales: ($84 x 25,500) ($161 x 12,500) Variable expenses Contribution margin Required: Toaster Oven $2,400,000 Unfavorable 465,000 $1,935,000 Toaster Oven $2,142,000 570,400 $1,571,600 2. Calculate the contribution margin volume variance. Convection Oven ✓ $2,557,500 700,000 $1,857,500 Convection Oven $2,012,500 658,900 $1,353,600 Total $4,957,500 1,165,000 $3,792,500 Required: 1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. 1.3 X per unit Total $4,154,500 1,229,300 $2,925,200
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