Question 13

A firm manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

....................................................................Standard........Super

Budgeted sales in units.................................3,200.............800

Budgeted selling price....................................$300...........$850

Budgeted contribution margin per unit...........$210...........$550

Actual sales in units......................................3,500...........1,500

Actual selling price.........................................$325............$840

What is the total sales-mix variance in terms of contribution margin?

$278,000 favorable

$170,000 favorable

$448,000 favorable

$110,000 favorable