US CMA Part 1 · Chapter 3 · Question 2 of 30
A company budgeted to sell 20,000 units with a standard contribution margin of $14 per unit. It actually sold 22,000 units. What is the sales volume variance in terms of contribution margin?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $28,000 favorable
Explanation
Sales volume variance = (actual units - budgeted units) x budgeted contribution margin per unit = (22,000 - 20,000) x $14 = $28,000 favorable, because more units were sold than planned.
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