Answer:
$700 favorable
Explanation:
Calculation to determine what The total sales-volume variance for operating income for the month of July would be
First step is to calculate the of contribution per unit using this formula
Contribution Margin per unit
=Sales− Variable manufacturing costs−Variable marketing and administrative expense/units
Let plug in the formula
Contribution Margin per unit=$60,000−$15,000−$10,000/5,000units
Contribution Margin per unit=$7per unit
Now let calculate the total sales-volume variance using this formula
Total sales volume variance
= Actual units−Static Budget × Static contribution margin per unit
Let plug in the formula
Total sales volume variance=5,100units−5,000units×$7
Total sales volume variance=$700 favorable
Therefore The total sales-volume variance for operating income for the month of July would be
$700 favorable
