1. 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:
   ($94 25,500)		$2,397,000
   ($159 15,500)				$2,464,500		$4,861,500
   Variable expenses		460,000		650,000		1,110,000
   Contribution margin		$1,937,000		$1,814,500		$3,751,500

   Actual Amounts:

   		Toaster Oven		Convection Oven		Total
   Sales:
   ($84 24,000)		$2,016,000
   ($159 12,000)				$1,908,000		$3,924,000
   Variable expenses		570,400		676,700		1,247,100
   Contribution margin		$1,445,600		$1,231,300		$2,676,900

   Required:

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

   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?