The Effect of the Sales Quantity Variance on the Contribution

question 50

Multiple Choice

The effect of the sales quantity variance on the contribution margin for November is

• A)$30,000 unfavorable.
• B)$18,000 unfavorable.
• C)$20,000 unfavorable.
• D)$15,000 unfavorable.

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Definitions:

Maximize Profits

The strategy or process aimed at making the highest possible profit from business operations.

Total Cost

The entire cost of production, including both fixed and variable costs.

Maximize Profits

An objective of firms where they seek to achieve the highest possible financial gain from their operations, often by optimizing production and sales strategies.

Supply Function

A mathematical equation or curve that shows the relationship between the price of a good and the quantity supplied.