Question
The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial business use and the House mate for residences. Budgeted and actual operating
The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial business use and the House mate for residences. Budgeted and actual operating data for the year 2012 were as follows
Static Budget Victor House Mate Total
Number Sold 5,000 20,000 25,000
Contribution margin 1,500,000 3,000,000 4,500,000
Actual Results Victor House Mate Total
Number Sold 4,000 28,000 32,000
Contribution Margin 1,280,000 3,920,000 5,200,000
What is the total sales mix variance in terms of the contribution margin?
My answer was 200,000 unfavorable - Is this correct?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started