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The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data
The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows: Static Budget Zenith House-Helper Total Number sold 20,000 80,000 100.000 Contribution margin $4,600,000 $15,200,000 $19,800,000 Actual Results Zenith House-Helper Total Nurnber sold 21,500 64,500 86,000 Contribution margin $6,665,000 $14,190,000 $20,855,000 Required: Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)
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