Answer the Following Questions Using the Information Below

question 38

Essay

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.
-Big Products sells only one product.Last year it sold 22,000 items when the budget was 16,000 items.The increased sales were due in part to reduced selling prices averaging $52.The budgeted selling price was $60.Total variable costs were budgeted at $144,000.Required:
Compute the contribution margin sales-volume variance.Why doesn't the contribution sales volume variance equal the difference between budgeted and actual revenue?

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Definitions:

Solar Rechargeable Batteries

Batteries that can be recharged by converting sunlight directly into electrical energy through photovoltaic cells.

Product Life Cycle

An idea that outlines the phases a product experiences from its launch, to expansion, peak, and finally, its decrease in the marketplace.

Fad Product

A product that experiences a rapid rise in popularity and equally rapid decline, often due to changing consumer tastes.

Life-Cycle Curve

A graph representing the stages through which a product goes from introduction to decline in the market.