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1.In this question, company has budgeted on selling 7000units of product X at $30/unit and 3000unit of product Y at selling of $40/ unit
The standard contribution per unit is 30% of selling price for both products
They actually sell 8000units of Xmas and 7000units of YorkWhy was average std contribution used instead of just standard contribution
2.in another, if no. Of new employees recruited are more than expected, why would that cause learning to be slower..from 70% to 75%
I was thinking more hands, less time spent on jobThank you..
1 The question you are referring to is asking for the sales quantity variance, which is only looking at the total quantity (and therefore assuming that the mix remains at standard mix).
If it remains at standard mix then the average standard contribution will remain the same.
2. If there are new employees then they will have to start learning again from the beginning.
It is only the remaining employees who will carry on getting faster at the expected rate of learning.
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