Wheat IncHas an Exclusive Contract with an Exporter

question 103

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.

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Definitions:

Puritan Congregationalists

Members of a Protestant sect that arose in the 16th century advocating strict religious discipline along with the simplification of the ceremonies and creeds of the Church of England.

Covenanted Community

A community formed through a formal agreement or covenant, often characterized by shared beliefs, values, or objectives, particularly in a religious or social context.

Massachusetts Bay Colony

An early English settlement established in 1630 by Puritan settlers seeking religious freedom in what is now Massachusetts, becoming one of the most successful and influential early colonies.

1630-1640

A decade during which significant English Puritan migration to North America occurred, leading to the establishment of early settlements.