Two products were sold. Total budgeted and actual total sales in number of units were identical. Unit

Question:

“Two products were sold. Total budgeted and actual total sales in number of units were identical. Unit variable costs and sales prices were the same. Actual contribution margin was lower.” What could be the reason for the lower 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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