The Octova Corporation Manufactures Two Types of Vacuum Cleaners: the ZENITH

question 84

Essay

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 20X5 are as follows:
$$\begin{array}{l}\begin{array} { l r r r } \text { Static Budget } & \text { Zenith } & \text { House-Helper } & \text { Total } \\\text { Number sold } & 20,000 & 80,000 & 100,000 \\\text { Contribution margin } & \$ 4,600,000 & \$ 15,200,000 & \$ 19,800,000\end{array}\\\\\begin{array} { l r r r } \text { Actual Results } & \text { Zenith } & \text { House-Helper } & \text { Total } \\\text { Number sold } & 21,500 & 64,500 & 86,000 \\\text { Contribution margin } & \$ 6,665,000 & \$ 14,190,000 & \$ 20,855,000\end{array}\end{array}$$ Required:
Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner,and in total.(in terms of the contribution margin)

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard, a concept developed in early childhood.

Conservation

In developmental psychology, it describes a child's ability to understand that properties of objects (like volume or mass) remain the same even when their form or appearance changes.

Understanding of the Mind

The comprehension or knowledge about how the mind works, including thoughts, feelings, and cognitive processes.

Cognitive Development

Refers to the process through which a child learns to perceive, think, and gain a comprehensive understanding of their environment.