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Business

Accounting

total sales quantity variance on contribution margin.

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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Question

CPA Corp produces and sells sausages. It expects to sell 4,000 dozen for the year for P45 contribution margin per dozen. The marketing manager expects the total market to be 10,000 dozen per year. The corporation sold 5,000 dozen at P40 contribution margin per unit. The total market was 25,000 dozen. Compute the total sales quantity variance on contribution margin. Indicate if favorable or unfavorable.

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In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.Becker Sofa Company's margin of safety (MOS) in sales dollars is:
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