The Vortex Equipment Co. manufactures two lawn mower models: the EcoCut and the TurboMax. The following information was collected: EcoCut Turbo Max Budgeted sales in units 4,000 2,000 Budgeted selling price $400 $900 Budgeted contribution margin $160 $420 Actual sales in units Actual selling price 3,500 2,500 $380 $920 What is the total sales-volume variance in terms of the contribution margin?

The Vortex Equipment Co. manufactures two lawn mower models: the EcoCut and the TurboMax. The following information was collected: EcoCut Turbo Max Budgeted sales in units 4,000 2,000 Budgeted selling price $400 $900 Budgeted contribution margin $160 $420 Actual sales in units Actual selling price 3,500 2,500 $380 $920 What is the total sales-volume variance in terms of the contribution margin?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 12PC

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