Given below is an excerpt from a management performance report: $\begin{array}{llll}&\text { Budget }&\text {Actual }&\text {Difference }\
\text { Contribution margin } & \$ 600,000 & \$ 580,000 & \$ 20,000 \mathrm{U} \
\text { Controllable fixed costs } & \$ 200,000 & \$ 220,000 & \$ 20,000 \mathrm{U}
\end{array}$ 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 both the contribution margin and controllable fixed costs are unfavorable by $20,000 each, leading to a total unfavorable variance of $40,000, which is 10% of the budgeted contribution margin of $600,000.

Given Below Is an Excerpt from a Management Performance Report