The Millers inc 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: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin? Choose one below: $613,000 favorable $172,000 favorable $172,000 unfavorable There is no correct solution $387,000 favorable
The Millers inc 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: Static Budget Victor House-Mate Total Number sold 20,000 80,000 100,000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Victor House-Mate Total Number sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 What is the total sales-mix variance closest to in terms of the contribution margin? Choose one below: $613,000 favorable $172,000 favorable $172,000 unfavorable There is no correct solution $387,000 favorable
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Millers inc 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:
| Static Budget | Victor | House-Mate | Total |
| Number sold | 20,000 | 80,000 | 100,000 |
| Contribution margin | $4,600,000 | $15,200,000 | $19,800,000 |
| Actual Results | Victor | House-Mate | Total |
| Number sold | 21,500 | 64,500 | 86,000 |
| Contribution margin | $6,665,000 | $14,190,000 | $20,855,000 |
What is the total sales-mix variance closest to in terms of the contribution margin?
Choose one below:
$613,000 favorable
$172,000 favorable
$172,000 unfavorable
There is no correct solution
$387,000 favorable
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