Answer the Following Questions Using the Information Below:
the Tornado

question 198

Multiple Choice

Answer the following questions using the information below:
The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products:
$$\begin{array} { l r r } & \text { Standard } & \text { Supreme } \\\text { Bud geted sales in urits } & 4000 & 1000 \\\text { Bud geted selling price } & \$ 300 & \$ 850 \\\text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \\\text { Actual sales in units } & 3500 & 1500 \\\text { Actual selling price } & \$ 325 & \$ 840\end{array}$$
-What is the total sales-volume variance in terms of the contribution margin?

• A)$275 000 favourable
• B)$105 000 unfavourable
• C)$380 000 favourable
• D)$170 000 favourable

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