Given below is an excerpt from a management performance report: $\begin{array}{lccc}
&\underline{ \text { Budget }} &\underline{\text { Actual }}& \underline{\text { Difference }} \
\text { Contribution margin } & \$ 600,000 & \$ 580,000 & \$ 20,000 \mathrm{U} \
\text { Controllable fixed costs }& \$ 200,000 & \$ 220,000 & \$ 20,000 \mathrm{U}
\end{array}$

The manager's overall performance

Question

Given below is an excerpt from a management performance report: $\begin{array}{lccc}
 &\underline{ \text { Budget }} &\underline{\text { Actual }}& \underline{\text { Difference }} \
\text { Contribution margin } & \$ 600,000 & \$ 580,000 & \$ 20,000 \mathrm{U} \
\text { Controllable fixed costs }& \$ 200,000 & \$ 220,000 & \$ 20,000 \mathrm{U}
\end{array}$

The manager's overall performance

Quizplus · Accepted Answer

The manager's performance is below expectations because both the contribution margin and controllable fixed costs are unfavorable, leading to a net unfavorable variance of $40,000, which is 10% of the budgeted contribution margin of $600,000.

Given Below Is an Excerpt from a Management Performance Report