Business College

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: Budgeted Operating Results MT ET MT ET Price per pound $ 40 $ 60 $ 50 $ 56 Variable cost per pound 20 36 24 40 Sales (in pounds) 4,000 4,000 3,960 5,040 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 the total contribution margin sales volume variance

Answers

Answer 1

Answer:

$24,160 favorable

Explanation:

The computation of the total contribution margin sales volume variance is given below:

The Budgeted contribution margin per pound of MT is

= $40 - $20

= $20 per pound

Now the budgeted contribution margin per pound of ET is

= $60 - $30

= $24  per pound

MT's contribution margin sales volume variance is

= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound

= (3960 - 4000) × $20

= $800 Unfavorable

ET's contribution margin sales volume variance is

= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound

= (5,040 - 4000) × $24

= $24,960 favorable

Now the total contribution margin sales volume is

= $800 unfavorable + $24,960 favorable

= $24,160 favorable

Related Questions

Other Questions
Tryouts, and making the Grade: Questions and Answers About1. Which means to believe in the quality and worth of others and yourself?respectfuldistractcompromiseteaseYes 3. *1 point3. What is the solution to this equation?45.98 = 18.78 + 2x64.7632.3827.213.6 What part of the constitution did the South use a justification for their rights? read "path to zero hunger by 2030." how is world hunger connected and affected by the sustainable development goals? pay attention to the trends and challenges on the infographic easy algebra question below first correct answer gets brainliest, if you put a link i will report and block Based on the resolution, summarize the storys message about what it means to be a hero. A hot-air balloon with a mass of 400 kilograms moves across the sky with 3,200 joules of kinetic energy. The velocity of the balloon is meters/second. What options does a juvenile justice officer have after reviewing a case? Check all that apply.sentencing the juvenile to detentionrecommending that the case be dismissedfiling a petition for further hearingsrecommending informal adjustmentrecommending an appeals judgesending the juvenile to a diversion programplss help..? Which point is located in Quadrant I? A) (0, -5) B) (0, 0) C) (0, 5) D) (5, 1) help please hhhhhhhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeelllllllllllllllllllllllllllllllllllllllppppppppppppppppppppppppppppp The Sun creates energy through a series of steps known as: 1. How does the girl in Ponyboy's class react when he uses a switchblade to dissect a worm? Howdoes Ponyboy feel, and what does this reveal about his character? a. Draw a food chain that could exist in your ecosystem. b. Draw a large arrow to show how the energy flows through your food chain HELPPPPP!! NO LINKS OR WILL BE REPORTED! DONT ANSWR JUST FOR POINTS!! WILL GIVE BRAINIEST! Find the tangent of angel U. HELP PLEASE ASAP A rectangular prism has a length of 19 meters, a height of 13 meters, and a width of 14 meters. What is its volume, in cubic meters? How do adult expectations and actions manifest in children? I need this done thanks! Two tanks are being filled. Tank 1 is being filled at a rate of 3/4 gallon per 2/3minuteTank 2 is filling at a rate of 5/8gallon per 1/2minute. Which tank is filling faster? Describe the process of decomposition. (hurricane sandy 2012) so i just spent $350 on a prom dress 4 no reason