Q1 Newman Corporation manufactures two bulbs, bulb-A for commercial building and bulb -B for household use. Budgeted and actual operating data for the year 2018 were as follows:

Static Budget Bulb A Bulb B Total

Number sold 5,000 20,000 25,000

Contribution margin $1,500,000 $3,000,000 $4,500,000

Actual Results Zenith House-Helper Total

Number sold 4,000 28,000 32,000

Contribution margin $1,280,000 $3,920,000 $5,200,000

It was estimated that the total volume for bulb-A and bulb-B will be 250,000 units, but actual industry volume was 256,000 units.

Required:

a. What is the contribution margin for the flexible budget?

b. What is the total static-budget variance in terms of the contribution margin

c. What is the total flexible-budget variance in terms of the contribution margin?