Iliff, Inc., produces and sells two types of countertop ovens€”the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.

Required:
1. Calculate the contribution margin variance.
2. What if actual units sold of the convection oven decreased? How would that affect the contribution margin variance? What if actual units sold of the convection oven increased? How would that affect the contribution margin variance?

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Budgeted Amounts: Toaster Oven Convection Oven Total Sales: ($90 x 25,000) ($ 1 50 × 1 5,000) $2,250,000 S2,250,000 $4,500,000 1,250,000 $1,750,000 S1,500,000 3,250,000 Variable expenses 00,000 750,000 Contribution margin Actual Amounts: Toaster Oven Convection Oven Total Sales: ($88 X 25,800) ($160 × 14,000) $2,270,400 S2,240,000 $4,510,400 1,283,800 $1,728,600 S1,498,000 3,226,600 Variable expenses 541,800 742,000 Contribution margin