A Company Sells Two Products: Radios and Speakers

Multiple Choice

A company sells two products: radios and speakers.The expected sales for radios were 1,500 units; 2,000 were sold.The budgeted selling price for radios was $15.00; however, the actual selling price was $13.00.The expected sales for speakers were 4,600 units; 5,000 were sold.The budgeted selling price for speakers was $7.50; however, the actual selling price was $9.00.Budgeted and actual variable costs were $4.00 per unit for the radios and $2.00 per unit for the speakers.What is the contribution margin sales-volume variance for the period?

A) $2,200 unfavourable
B) $2,200 favourable
C) $4,500 favourable
D) $7,700 favourable
E) $7,700 unfavourable