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Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March: Actual Budget Calamine Capity Calamine Capity Sales in pounds 3,900 lbs. 3,980 lbs. 4,600 lbs. 3,400 lbs. Price per pound $2.80 $2.80 $2.00 $3.00 Variable cost per pound 1.00 2.00 1.00 1.50 Contribution margin $1.80 $0.80 $1.00 $1.50 Budgeted and actual fixed corporate sustaining costs are $1,850 and $2,300, respectively. For the contribution margin, what is the total static budget variance? A. $170 favorable B. $7,020 favorable C. $504 favorable D. $504 unfavorable
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