Answer the Following Questions Using the Information Below:
the Corata

question 16

Multiple Choice

Answer the following questions using the information below:
The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
$\begin{array}{lrr}&\text { Standard }&\text { Super }\\\text { Bud geted sales in units } & 2,400 & 600 \\\text { Bud geted selling price } & \$ 600 & \$ 1,700 \\\text { Bud geted contribution margin per unit } & \$ 400 & \$ 1,050 \\\text { Actual sales in units } & 2,800 & 1,200 \\\text { Actual selling price } & \$ 650 & \$ 1,680\end{array}$
-What is the total sales-quantity variance in terms of the contribution margin?

• A) $260,000 favorable
• B) $790,000 favorable
• C) $530,000 favorable
• D) $290,000 favorable

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes.

Retained Earnings

Profits that a company decides to keep or reinvest in the business after dividends have been paid out to shareholders, reflecting ongoing financial health and potential for growth.

Net Income

The ultimate financial gain of a company after expenses and taxes are deducted from its total revenue.

Net Working Capital

A measure of a business's short-term financial performance, shown by the balance between its current assets and liabilities.