Given below is an excerpt from a management performance report: $\begin{array}{llll}&\text { Budget } & \text { Actual } & \text {Difference }\
\text { Contribution margin } & \$ 1,000,000 & \$ 1,050,000 & \$ 50,000 \
\text { Controllable fixed costs } & \$ 500,000 & \$ 450,000 & \$ 50,000
\end{array}$ The manager's overall performance

Question

Quizplus · Accepted Answer

The manager's overall performance is 20% above expectations because the actual contribution margin is $50,000 higher than budgeted, and controllable fixed costs are $50,000 lower than budgeted, resulting in a total favorable variance of $100,000, which is 20% of the budgeted contribution margin of $1,000,000.

Given Below Is an Excerpt from a Management Performance Report