Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.

The total contribution margin sales volume variance of the period is:
A) $5,800 favorable.
B) $36,400 unfavorable.
C) $48,000 unfavorable.
D) $63,950 unfavorable.
E) $107,920 favorable.

Question

Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:

Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.

The total contribution margin sales volume variance of the period is:

The total contribution margin sales volume variance of the period is:
A) $5,800 favorable. 
B) $36,400 unfavorable. 
C) $48,000 unfavorable. 
D) $63,950 unfavorable. 
E) $107,920 favorable.

Quizplus · Accepted Answer

The Answer of Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.

The total contribution margin sales volume variance of the period is:
A) $5,800 favorable. 
B) $36,400 unfavorable. 
C) $48,000 unfavorable. 
D) $63,950 unfavorable. 
E) $107,920 favorable.