Question
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the HouseMate for residences. Budgeted and actual operating data
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the
HouseMate
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 | 5,300 | 35,000 | 40,300 | |
Contribution margin | $1,400,000 | $4,130,000 | $5,530,000 |
What is the total salesquantity variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.)
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