Contribution Margin Volume VarianceIoannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: ToasterOven ConvectionOven Total Sales: ($96 × 27,500) $2,640,000 ($151 × 19,500) $2,944,500 $5,584,500 Variable expenses 535,000 750,000 1,285,000 Contribution margin $2,105,000 $2,194,500 $4,299,500 Actual Amounts: ToasterOven ConvectionOven Total Sales: ($85 × 27,000) $2,295,000 ($163 × 13,000) $2,119,000 $4,414,000 Variable expenses 513,200 721,200 1,234,400 Contribution margin $1,781,800 $1,397,800 $3,179,600 1.Calculate the budgeted average unit contribution margin.2. Calculate the contribution margin volume variance

Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown...

Contribution Margin Volume Variance

Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.

Budgeted Amounts:

	Toaster Oven	Convection Oven	Total
Sales:
($96 × 27,500)	$2,640,000
($151 × 19,500)		$2,944,500	$5,584,500
Variable expenses	535,000	750,000	1,285,000
Contribution margin	$2,105,000	$2,194,500	$4,299,500

Actual Amounts:

	Toaster Oven	Convection Oven	Total
Sales:
($85 × 27,000)	$2,295,000
($163 × 13,000)		$2,119,000	$4,414,000
Variable expenses	513,200	721,200	1,234,400
Contribution margin	$1,781,800	$1,397,800	$3,179,600

1.Calculate the budgeted average unit contribution margin.

2. Calculate the contribution margin volume variance

Jun 11, 2022

SOLUTION.PDF

Contribution Margin Volume Variance Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment