Refer to Cornerstone Exercise 18.6.

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