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Author Question: Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two ... (Read 40 times)

asmith134

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Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:

ActualBudget
CalamineCapityCalamineCapity
Sales in pounds3850 lbs.3980 lbs.4500 lbs.3500 lbs
Price per pound$2.80$2.80$2.00$3.00
Variable cost per pound1.002.001.001.50
Contribution margin$1.80$0.80$1.00$1.50

Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.

For the contribution margin, what is the total static-budget variance?
◦ $6930 favorable
◦ $364 unfavorable
◦ $70 favorable
◦ $364 favorable


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Marked as best answer by asmith134 on Mar 6, 2021

xiaomengxian

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asmith134

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Reply 2 on: Mar 6, 2021
Gracias!


bigsis44

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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