The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows:
Static Budget | Zenith | House-Helper | Total |
Number sold | 20,000 | 80,000 | 100,000 |
Contribution margin | $4,600,000 | $15,200,000 | $19,800,000 |
Actual Results | Zenith | House-Helper | Total |
Number sold | 21,500 | 64,500 | 86,000 |
Contribution margin | $6,665,000 | $14,190,000 | $20,855,000 |
Required:
Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)