The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: House-Mate Total Static Budget Number sold Contribution margin Actual Results Number sold A. $312,000 favorable B. 44,500 Contribution margin $1,400,000 $4,130,000 $5,530,000 What is the total sales-mix variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.) D. $1,560,000 Victor $462,800 unfavorable C. $925,600 unfavorable Victor 6,000 24,000 $1,237,600 favorable 5500 30,000 $3,120,000 $4,680,000 House-Mate Total 39,000
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows: House-Mate Total Static Budget Number sold Contribution margin Actual Results Number sold A. $312,000 favorable B. 44,500 Contribution margin $1,400,000 $4,130,000 $5,530,000 What is the total sales-mix variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.) D. $1,560,000 Victor $462,800 unfavorable C. $925,600 unfavorable Victor 6,000 24,000 $1,237,600 favorable 5500 30,000 $3,120,000 $4,680,000 House-Mate Total 39,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for
residences. Budgeted and actual operating data for the year 2017 were as follows:
House-Mate
Total
Static Budget
Number sold
Contribution margin
A. $312,000 favorable
B.
C.
Actual Results
Number sold
44,500
Contribution margin
$1,400,000
$4,130,000 $5,530,000
What is the total sales-mix variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.)
D.
$1,560,000
Victor
$462,800 unfavorable
Victor
6,000 24,000
$925,600 unfavorable
$1,237,600 favorable
5500
$3,120,000 $4,680,000
Total
30,000
House-Mate
39,000
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