What is the sales margin variance? a.(3,075,000) b.3,480,000 c.(3,480,000) d.3,075,000 5.What is the price variance? a.(675,000) b.3,750,000 c.(405,000) d.3,075,000 6.What is the quantity variance? a.(405,000) b.3,075,000 c.3,480,000 d.405,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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4.Statin company expected to sell 3000 masks for $200 each but ended up selling 7500 for $150 each.

Their contribution margins are listed below

Actual Margin =  $500 

Standard Margin = $90 

What is the sales margin variance?

a.(3,075,000)

b.3,480,000

c.(3,480,000)

d.3,075,000

5.What is the price variance?

a.(675,000)

b.3,750,000

c.(405,000)

d.3,075,000

6.What is the quantity variance?

a.(405,000)

b.3,075,000

c.3,480,000

d.405,000

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