Answer the Following Questions Using the Information Below:
the Broken

question 222

Multiple Choice

Answer the following questions using the information below:
The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows:
$$\begin{array} { l r r r } \text { Static Budget } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\\text { Number sold } & 5000 & 20000 & 25000 \\\text { Contribution margin } & \$ 1500000 & \$ 3000000 & \$ 4500000 \\& & & \\\text { Actual Results } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\\hline \text { Number sold } & 4000 & 28000 & 32000 \\\text { Contribution margin } & \$ 1280000 & \$ 3920000 & \$ 5200000\end{array}$$ Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid 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)$200 000 unfavourable
• B)$700 000 favourable
• C)$900 000 favourable
• D)$360 000 unfavourable

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