Contribution Margin Variance

Iliff, Inc., produces and sells two types of countertop ovensthe toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.

Budgeted Amounts:

		Toaster Oven		Convection Oven		Total
Sales:
($90 25,000)		$2,250,000
($150 15,000)				$2,250,000		$4,500,000
Variable expenses		500,000		750,000		1,250,000
Contribution margin		$1,750,000		$1,500,000		$3,250,000

Actual Amounts:

		Toaster Oven		Convection Oven		Total
Sales:
($88 25,800)		$2,270,400
($160 14,000)				$2,240,000		$4,510,400
Variable expenses		541,800		742,000		1,283,800
Contribution margin		$1,728,600		$1,498,000		$3,226,600

Required:

1. Calculate the contribution margin variance. $ Unfavorable