Wheat Inc Has an Exclusive Contract with an Exporter

question 71

Multiple Choice

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 CD's contribution margin sales volume variance?

• A) $500 favorable.
• B) $2,500 favorable.
• C) $5,500 favorable.
• D) $12,500 favorable.
• E) $25,000 favorable.