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A company uses standard marginal costing.Last month the standard contribution on actual sales was $10,000 and the following variances arose:
total variable costs variance $2,000 (A)
sales price variance $500 (F)
sales volume contribution variance $1,000 (A)What was the actual contribution?
can i know the answer with the working please
how can it b 7500.it is all about contribution (selling price n variable cost)
The correct answer is 8,500.
(The sales volume contribution variance is not relevant because you are starting with the standard contribution on the actual sales, not with the budgeted contribution)
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