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anastassius [24]
4 years ago
8

"The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various fact

ors affecting the difference between budgeted and actual operating income.The effect of the sales volume variance on the contribution margin for November is:"

Social Studies
1 answer:
Ira Lisetskai [31]4 years ago
6 0

Answer:

The effect of the sales volume variance on the contribution margin for November is $20000 unfavorable.

Explanation:

As the data of the question is missing,  the question is searched and the data is found which is attached herewith.

As per the budget column of the attached data

Sales Price=$300,000

Number of Sales=6000

So the Price per unit is given as

Price_{unit}=\frac{Price_{Sales}}{Sales}\\Price_{unit}=\frac{300000}{6000}\\Price_{unit}=\$50\\

Similarly the variable costs is given as

Variable Costs=$180,000

So the Variable Cost per unit is given as

Variable\,Cost_{unit}=\frac{Variable\,Cost_{total}}{Sales}\\Variable\,Cost_{unit}=\frac{180000}{6000}\\Variable\,Cost_{unit}=\$30\\

The actual sales in the month of November is given as 5000.

The effect is given asEffect=[Price_{unit}-Variable\, Cost_{unit}][n_{sales_{budget}}-n_{sales_{actual}}]\\Effect=[50-30][6000-5000]\\Effect=\$20000\\

So the effect of the sales volume variance on the contribution margin for November is $20000 unfavorable.

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