Answer the Following Questions Using the Information Below

question 27

Multiple Choice

Answer the following questions using the information below:
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2019 were as follows:
Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
-What is the total static-budget variance in terms of the contribution margin?

• A)$900,000 F
• B)$700,000 F
• C)$200,000 U
• D)$360,000 U
• E)$500,000 F

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Self-Censorship

The act of withholding one's thoughts, opinions, or feelings due to fear of social or official repercussions.

Illusion of Vulnerability

A cognitive bias where individuals underestimate their susceptibility to negative events.