Answer the Following Questions Using the Information Below:
the Broken

question 25

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 market-size variance?

• A)$1 260 000 F
• B)$108 000 F
• C)$360 000 U
• D)$1 152 000 F

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Definitions:

Intermingle

To mix or blend together elements or groups that were previously separate.

Engineering Department

A division within an organization responsible for applying scientific principles to design, develop, and maintain products, systems, or structures.

Independent Contractor

An individual who provides services to another entity under terms specified in a contract or within a freelance agreement, not considered an employee.

Employee

A person who is hired by another person or business for a salary or wages to perform specific duties.