Answer the following questions using the information below:
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2019 were as follows:
Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
-Big Products sells only one product.Last year it sold 22,000 items when the budget was 16,000 items.The increased sales were due in part to reduced selling prices averaging $52.The budgeted selling price was $60.Total variable costs were budgeted at $144,000.Required:
Compute the contribution margin sales-volume variance.Why doesn't the contribution sales volume variance equal the difference between budgeted and actual revenue?

Question

Answer the following questions using the information below:
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2019 were as follows:
   Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
-Big Products sells only one product.Last year it sold 22,000 items when the budget was 16,000 items.The increased sales were due in part to reduced selling prices averaging $52.The budgeted selling price was $60.Total variable costs were budgeted at $144,000.Required:
Compute the contribution margin sales-volume variance.Why doesn't the contribution sales volume variance equal the difference between budgeted and actual revenue?

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The Answer of Answer the following questions using the information below:
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2019 were as follows:
   Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
-Big Products sells only one product.Last year it sold 22,000 items when the budget was 16,000 items.The increased sales were due in part to reduced selling prices averaging $52.The budgeted selling price was $60.Total variable costs were budgeted at $144,000.Required:
Compute the contribution margin sales-volume variance.Why doesn't the contribution sales volume variance equal the difference between budgeted and actual revenue?

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