Question
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows:
Static Budget Victor House-Mate Total
Number sold 6,000 24,000 30,000
Contribution margin $1,560,000 $3,120,000 $4,680,000
Actual Results Victor House-Mate Total
Number sold 5500 39,000 44,500
Contribution margin $1,400,000 $4,130,000 $5,530,000
What is the total sales-mix variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.)
A. | $312,000 favorable | |
B. | $462,800 unfavorable | |
C. | $925,600 unfavorable | |
D. | $1,237,600 favorable |
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