Given below is an excerpt from a management performance report: $\begin{array}{llll}&\text { Budget }&\text { Actual }&\text { Difference }\
\text { Contribution margin } & \$ 600,000 & \$ 580,000 & \$ 20,000 \cup \
\text { Controllable fixed costs } & \$ 200,000 & \$ 220,000 & \$ 20,000 \cup
\end{array}$ The manager's overall performance
A)is 10% above expectations.
B)is 10% below expectations.
C)is equal to expectations.
D)cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

The manager's overall performance is 10% below expectations because the actual contribution margin is $20,000 less than the budgeted amount, and the actual controllable fixed costs are $20,000 more than budgeted, resulting in a total negative variance of $40,000.

Given Below Is an Excerpt from a Management Performance Report