Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.
What is MT's contribution margin sales volume variance?
A) $800 unfavorable.
B) $1,040 unfavorable.
C) $22,960 favorable.
D) $23,760 favorable.
E) $24,000 favorable.

Question

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.
What is MT's contribution margin sales volume variance?
A) $800 unfavorable. 
B) $1,040 unfavorable. 
C) $22,960 favorable. 
D) $23,760 favorable. 
E) $24,000 favorable.

Quizplus · Accepted Answer

The Answer of Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.
What is MT's contribution margin sales volume variance?
A) $800 unfavorable. 
B) $1,040 unfavorable. 
C) $22,960 favorable. 
D) $23,760 favorable. 
E) $24,000 favorable.

Gourmet Aroma Coffee House Has an Exclusive Contract with Columbia