Dear Sir,
Could you please help me to understand where I made mistake if my answer is not correct?
A company has a budget to sell 7000 units of product X at selling price of $30 per unit and 3000 unit of product Y at selling price of $40.
The standard contribution per unit is 30% of selling price for both products. They actually sell 8000 units of X and 7000 unit of Y
What is qty contribution variances.
My answer is $49,500 (F)
Actual tot qty 15000 units
Budged tot qty 10000 units
5000 (F)
Average contribution
7000 * ( 30%of 30) 63,000
3000 * (30%of 40) 36,000
99,000/10,000 = 9,9 *5000 = 49,500
The answer provided in the question is 48,500 (F)
Thanks in advance for your help
Gabriella
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Practice Question n 2 Chapter 14
10y ago#1It is a typing error and the correct answer is $49,500 favourable.
If you look at the answer at the end of the lecture notes then it does explain that it is $49,500 favourable!
You asked the same thing before and I gave you the same reply :-)
Hi Sir,
49,500 (F) is the answer that I got.I didn 't know that the answer were at the end of lecture note.
I don't remember I had already asked the same question, if I did sorry.
Thanks for your reply
Gabriella
10y ago#3It is no problem, and you are welcome :-)
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