Question - A business has the following actual and static budget data for two of its sales items for the month:
|
|
Actual
|
Budget
|
|
|
Item 1
|
Item 2
|
Item 1
|
Item 2
|
|
Sales units
|
7,000
|
8,000
|
6,400
|
8,600
|
|
Sell price per unit
|
$25
|
$30
|
$25
|
$30
|
|
Variable cost per unit
|
$11
|
$14
|
$12
|
$13
|
|
Contribution margin per unit
|
$14
|
$16
|
$13
|
$17
|
Required -
A. Determine the actual total contribution margin for the month.
B. Determine the static budget total contribution margin for the month.