A company sells two products: radios and speakers. The expected sales for radios were 1,500 units; 2,000 were sold. The budgeted selling price for radios was $15.00; however, the actual selling price was $13.00. The expected sales for speakers were 4,600 units; 5,000 were sold. The budgeted selling price for speakers was $7.50; however, the actual selling price was $9.00. Budgeted and actual variable costs were $4.00 per unit for the radios and $2.00 per unit for the speakers. What is the contribution margin sales-volume variance for the period?
A) $2,200 unfavourable
B) $2,200 favourable
C) $4,500 favourable
D) $7,700 favourable
E) $7,700 unfavourable
Correct Answer:
Verified
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