The Omega 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:

Required:
a.Calculate the contribution margin for the flexible budget.
b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

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Static Budget Total House-Helper ZENITH | Number sold Contribution margin 15,000 $3,750,000 60,000 75,000 $12,000,000 $15,750,000 Actual Results Number sold Contribution margin Total ZENITH House-Helper 16,500 38,500 55,000 $10,200,000 $16,400,000 $6,200,000