Answer the Following Questions Using the Information Below:
Capity Tea

question 59

Multiple Choice

Answer the following questions using the information below:
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
$\begin{array}{lrrrr} &\text { Actual }&&\text { Budget }\\& \text { Calamine } & \text { Capity } & \text { Calamine } & \text { Capity } \\\text { Sales in pounds } & 3,740 \mathrm{lbs} . & 3,960 \mathrm{lbs} . & 4,400 \mathrm{lbs} . & 3,300 \mathrm{lbs} \\\text { Price per pound } & \$ 2.80 & \$ 2.80 & \$ 2.00 & \$ 3.00 \\\text { Variable cost per pound } & 1.00 & 2.00 & 1.00 & 1.50 \\\text { Contribution margin } & \$ 1.80 & \$ 0.80 & \$ 1.00 & \$ 1.50\end{array}$ Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.
-For the contribution margin,what is the total static-budget variance?

• A) $220 favorable
• B) $330 unfavorable
• C) $1,000 favorable
• D) $550 favorable

---

Definitions:

Empathy

The ability to understand and share the feelings of another, putting oneself in another's shoes emotionally.

Observational Learning

Learning that occurs by watching the actions and outcomes of others' behavior, rather than through direct experience.

Modeling

A learning process where individuals learn and replicate behaviors by observing and imitating others.

Mirror Neurons

Neurons that fire both when an individual performs an action and when they observe the same action performed by another, thought to be involved in empathy, learning by imitation, and understanding others’ actions.