Cornerstone Exercise 18.6 (Algorithmic) 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:
($92 * 26,000)	$2,392,000
($157 * 15,500)		$2,433,500	$4,825,500
Variable expenses	525,000	720,000	1,245,000
Contribution margin	$1,867,000	$1,713,500	$3,580,500

Actual Amounts:

	Toaster Oven	Convection Oven	Total
Sales:
($84 * 24,500)	$2,058,000
($155 * 13,000)		$2,015,000	$4,073,000
Variable expenses	552,800	703,400	1,256,200
Contribution margin	$1,505,200	$1,311,600	$2,816,800

Required:

1. Calculate the contribution margin variance.

$

Favorable or Unfavorable?