Calculate the contribution margin variance

Assignment Help Accounting Basics

Reference no: EM133611047

Question: Arlinghaus, Inc., produces and sells two types of recliners. Model R is a simple model, with a manual lever for operating the footrest. Model RX is a more complex model, with a motorized footrest. Budgeted and actual data for the two models are as follows: Budgeted Amounts: Model R Model RX Total Sales ($250 × 2,000) $500,000 ($500 × 500) $250,000 $750,000 Variable expenses 1,50,000 1,75,000 3,25,000 Contribution margin $350,000 $75,000 $425,000 Actual Amounts: Model R Model RX Total Sales ($250 × 1,750) $437,500 ($500 × 550) $275,000 $712,500 Variable expenses 1,25,000 1,50,000 2,75,000 Contribution margin $312,500 $125,000 $437,500 Calculate the contribution margin variance. a. $37,500

Reference no: EM133611047

Questions Cloud

What are four interlocking aspects of oppression : What are the four interlocking aspects of oppression? Describe and give an example of each one.

Building bath pipes in terms of developmental milestones : Toy analysis for Boon building bath pipes in terms of developmental milestones. What is the intended target age rain for the toy?

Avoid the same or similar error in the future : Identify at least one way you could avoid the same or similar error in the future.

About psychological-biological and sociological explanations : You learned about psychological, biological, and sociological explanations of violence.

Calculate the contribution margin variance : Contribution margin $312,500 $125,000 $437,500 Calculate the contribution margin variance. a. $37,500

Describe the constraints that physicians experience : Describe the constraints/challenges that physicians experience as being service providers affiliated with a Managed Care Organization.

Discuss major findings from learning styles : Discuss major findings from learning styles research regarding Hispanic, African-American, and Native American students.

Clients or former clients want to become friends : Increasingly, clients or former clients want to become "friends" with their counselor via the Internet.

How much of the first payment goes to interest expense : How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan

User Account

All Pages