Use the following to answer questions:
The WriteAll Company sells two types of pens - rollerball and ballpoint - to specialty retailers. The company budgets by month in order to anticipate the peak demands occurring at various times during the year. The following information is available for July.

-How much is the total contribution-margin sales-volume variance?
A) $4,000 unfavorable
B) $12,500 unfavorable
C) $0
D) $8,500 favorable

Question

Use the following to answer questions:
The WriteAll Company sells two types of pens - rollerball and ballpoint - to specialty retailers. The company budgets by month in order to anticipate the peak demands occurring at various times during the year. The following information is available for July.
 
-How much is the total contribution-margin sales-volume variance?
A) $4,000 unfavorable 
B) $12,500 unfavorable 
C) $0 
D) $8,500 favorable

Quizplus · Accepted Answer

The total contribution-margin sales-volume variance is calculated by comparing the actual sales volume to the budgeted sales volume, multiplied by the contribution margin per unit. The $4,000 unfavorable variance indicates that the actual sales volume was less than the budgeted sales volume, resulting in a lower contribution margin.

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