Q12 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 60 $ 90 $ 70 $ 85 Variable cost per pound 30 54 32 60 Sales (in pounds) 3,300 3,300 3,192 4,408 The total market was estimated to be 73,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds. What is MT's contribution margin sales volume variance? Multiple Choice $3,240 unfavorable. $26,200 favorable. $3,480 unfavorable. $25,400 favorable. $26,440 favorable.
Q12 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 60 $ 90 $ 70 $ 85 Variable cost per pound 30 54 32 60 Sales (in pounds) 3,300 3,300 3,192 4,408 The total market was estimated to be 73,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds. What is MT's contribution margin sales volume variance? Multiple Choice $3,240 unfavorable. $26,200 favorable. $3,480 unfavorable. $25,400 favorable. $26,440 favorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q12
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
| Budgeted | Operating Results | |||
|---|---|---|---|---|
| MT | ET | MT | ET | |
| Price per pound | $ 60 | $ 90 | $ 70 | $ 85 |
| Variable cost per pound | 30 | 54 | 32 | 60 |
| Sales (in pounds) | 3,300 | 3,300 | 3,192 | 4,408 |
The total market was estimated to be 73,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds.
What is MT's contribution margin sales volume variance?
Multiple Choice
-
$3,240 unfavorable.
-
$26,200 favorable.
-
$3,480 unfavorable.
-
$25,400 favorable.
-
$26,440 favorable.
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