Answer the Following Questions Using the Information Below:
the Broken

question 221

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 sales-quantity variance in terms of the contribution margin?

• A)$200 000 unfavourable
• B)$360 000 unfavourable
• C)$900 000 favourable
• D)$1 260 000 favourable

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Definitions:

Marketing Metrics

Quantitative measures used to track the performance of marketing activities and campaigns.

Store Visit

The act of potential customers or consumers physically visiting a retail or merchandise location to purchase or inspect products.

Markdown Percentage

The reduction in the selling price of goods, expressed as a percentage of the original price, usually to clear inventory or stimulate sales.

Average Transaction Size

The average amount spent by customers in a single transaction or purchase.