Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is AB's contribution margin sales volume variance?
A) $0.
B) $1,500 unfavorable.
C) $4,000 favorable.
D) $7,500 unfavorable.
E) $10,000 unfavorable.

Question

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is AB's contribution margin sales volume variance?
A) $0. 
B) $1,500 unfavorable. 
C) $4,000 favorable. 
D) $7,500 unfavorable. 
E) $10,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is AB's contribution margin sales volume variance?
A) $0. 
B) $1,500 unfavorable. 
C) $4,000 favorable. 
D) $7,500 unfavorable. 
E) $10,000 unfavorable.

Wheat Inc Has an Exclusive Contract with an Exporter