GHI Company manufactures two products that sell to the same market. Its budget andoperating results for 2021 are as follows:Budgeted ActualUnit salesProduct A30,00035,000Product B60,00065,000Unit contribution marginProduct AP 4.00P 3.00Product BPI0.00P12.00Unit selling priceProduct API0.00P12.00Product BP25.00P24.00Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.Actual industry volume for the period was 2,000,000 units.The market size contribution margin variance isSelect one:a. P240,000 UO b. P240,000 Fc. P160,000 Fd. PI60,000 U

Contribution margin variance refers to the variance which is computed by figuring the difference…

GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P4.00 P 3.00 Product B PI0.00 P12.00 Unit solling price Product A P10.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.

GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P4.00 P 3.00 Product B PI0.00 P12.00 Unit solling price Product A P10.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 51E

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