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undefined The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual
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The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual operating data for the past year are: Static Budget Actual Results Home Office Home Office Number of chairs sold 260,000 140,000 248,400 165,600 Contribution margin $26,000,000 $11,200,000 $22,356,000 $13,248,000 The industry volume for residential and office chairs of the type sold by the Chair company had been estimated at 2,400,000. Actual industry volume for the year was 2,200,000 chairs. Required: (make sure to label each answer and show your work) a. Compute the sale-mix variance for the office chair. b. Compute the sales- quantity variance for the Home chairStep by Step Solution
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