The contribution margin volume variance is the difference between the actual and budgeted quantities sold multiplied by the:
A)budgeted sales price
B)actual contribution margin variance
C)budgeted contribution margin variance
D)budgeted average unit contribution margin

Question

Quizplus · Accepted Answer

The contribution margin volume variance is calculated by taking the difference between the budgeted and actual quantities sold multiplied by the budgeted average unit contribution margin. Therefore, the correct choice is D, which is the budgeted average unit contribution margin.

The Contribution Margin Volume Variance Is the Difference Between the Actual