Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions