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QUESTION

The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered...

The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

                                                                                           Standard               Super

   Budgeted sales in units                                                 2700                       600

   Budgeted selling price                                                   $600                  $1,700

   Budgeted contribution margin per unit                   $600                   $1080

   Actual sales in units                                                      3000                     1400

   Actual selling price                                                        $650                  $1,680

What is the total sales-mix variance in terms of the contribution margin? (Round intermediary calculations to two decimal places.)

A. $665,280 favorable

B. $369,600 favorable

C. $295,680 favorable

D. $1,034,880 favorable

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