1. Contribution Margin Volume Variance

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

   Budgeted Amounts:

   		Toaster Oven		Convection Oven		Total
   Sales:
   ($92 27,000)		$2,484,000
   ($147 16,000)				$2,352,000		$4,836,000
   Variable expenses		545,000		810,000		1,355,000
   Contribution margin		$1,939,000		$1,542,000		$3,481,000

   Actual Amounts:

   		Toaster Oven		Convection Oven		Total
   Sales:
   ($85 23,000)		$1,955,000
   ($157 12,500)				$1,962,500		$3,917,500
   Variable expenses		588,000		712,300		1,300,300
   Contribution margin		$1,367,000		$1,250,200		$2,617,200

   Required:

   1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations. $fill in the blank 1 per unit

   2. Calculate the contribution margin volume variance.

   $fill in the blank 2

   FavorableUnfavorable

   3. What if actual units sold of the convection oven decreased? How would that affect the contribution margin volume variance?

   It would become less unfavorable or more favorable.It would become more unfavorable or less favorable.

   What if actual units sold of the convection oven increased? How would that affect the contribution margin volume variance?

   It would become less unfavorable or more favorable.It would become more unfavorable or less favorable.

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