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-quantity 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-quantity variance?
A) $4,000 unfavorable 
B) $12,500 unfavorable 
C) $0 
D) $8,500 favorable

Quizplus · Accepted Answer

The total contribution-margin sales-quantity variance is $0 because it measures the difference between the actual and expected sales quantities, and if not specified otherwise, it is assumed to be zero.

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