Answer the Following Questions Using the Information Below

question 62

Multiple Choice

Answer the following questions using the information below:
The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

-What is the total sales-volume variance in terms of the contribution margin?

• A)$216,000 unfavorable
• B)$216,000 favorable
• C)$556,000 favorable
• D)$896,000 favorable

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, after accounting for depreciation or amortization.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, used to account for declines in value over time.

Real Estate

Property consisting of land or buildings, including the natural resources and air space above the land.

Appraised

The process of determining the estimated market value of an asset, often performed by a professional appraiser.