Solved

Answer the Following Questions Using the Information Below:
the Fortise

Question 123

Multiple Choice

Answer the following questions using the information below:
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows:
 Static Budget  Victor  House-Mate  Total  Number sold 6,00024,00030,000 Contribution margin $1,560,000$3,120,000$4,680,000 Actual Results  Victor  House-Mate  Total  Number sold 5,00035,00040,000 Contribution margin $1,400,000$4,130,000$5,530,000\begin{array}{l}\begin{array} { l r r r } \text { Static Budget } & \text { Victor } & \text { House-Mate } & \text { Total } \\\hline \text { Number sold } & 6,000 & 24,000 & 30,000\\\text { Contribution margin } &\$ 1,560,000 & \$ 3,120,000 &\$ 4,680,000\\\\\text { Actual Results } & \text { Victor } & \text { House-Mate } & \text { Total } \\\text { Number sold } & 5,000 & 35,000 & 40,000 \\\text { Contribution margin } & \$ 1,400,000 & \$ 4,130,000 & \$ 5,530,000\end{array}\end{array}
-What is the contribution margin for the flexible budget?


A) $1,250,000
B) $4,200,000
C) $5,250,000
D) $5,850,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions