The actual margin per unit and margin per unit estimated in the plan are $6 and $8,respectively.The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units,respectively.What is the margin variance of the business?
A)-$10,000
B)$10,000
C)-$20,000
D)$20,000
E)$5,000

Question

Quizplus · Accepted Answer

The margin variance is calculated as (Actual Margin - Planned Margin) x Actual Volume. Here, it is ($6 - $8) x 5,000 = -$10,000.

The Actual Margin Per Unit and Margin Per Unit Estimated