Use the following information for the next 7 questions.
Paris Perfumery sells two perfumes, L'Amor and Plaisir. The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows:
-(Appendix 11A) The contribution margin budget variance was
A) $262,500 U
B) $262,500F
C) $ 0
D) $87,500 U

Question

Use the following information for the next 7 questions.
Paris Perfumery sells two perfumes, L'Amor and Plaisir. The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows: 
-(Appendix 11A) The contribution margin budget variance was
A) $262,500 U 
B) $262,500F 
C) $ 0 
D) $87,500 U

Quizplus · Accepted Answer

The contribution margin budget variance is unfavorable (U) by $262,500, indicating that the actual contribution margin was less than the budgeted amount by this figure.

Use the Following Information for the Next 7 Questions