Use the Information Below to Answer the Following Question(s)

question 147

Multiple Choice

Use the information below to answer the following question(s) .Special Tea Products (STP) has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the static budget variance (contribution margin) for Mild Tea?

• A)$2,250 U
• B)$2,250 F
• C)$900 U
• D)$1,350 F
• E)$1,350 U

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