What is the firms sales volume variance? a. $35,000F d. $85,000F b. $49,000F e. $135,000F c. $51,000F

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What is the firm’s sales volume variance?
a. $35,000F d. $85,000F
b. $49,000F e. $135,000F
c. $51,000F
C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,600 units for $45 each to earn a $25 contribution margin per unit. Janice McCall, president, expects the year’s total market to be 32,000 units. For the year just completed, the local college won the national hockey championship, and the total market was 100,000 units. C. W. McCall sells 3,000 units and calculates sales variances using contribution margin.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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