# CMA Study Group

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• #### 1.  Two contradicting answers SALES VARIANCE , can anyone explain?

Posted 06-11-2022 08:59 AM

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Tayba Al-Mehdar
Controller
Khobar
Saudi Arabia
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• #### 2.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

Posted 06-12-2022 02:31 AM
Hi

Sales volume variance is the difference between actual sales volume and budgeted sales volume multiply with standard contribution margin
question one standard contribution margin is
120,000/ 12000 = 10
(Actual sales - budgeted sales )  x sCm
( 11000 - 12000 ) x 10
-1000x 10  = 10,000 U

Question 2

SCM is 6 - 3.5 = 2.5
42000-40000= 2000 x 2.5 = 5000 F

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Furqan Ali Raza
Accountant
Dubai
United Arab Emirates
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• #### 3.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

Posted 06-12-2022 03:00 AM
In flexible budget actual data is used with standard price , that's why difference Between flexible budget and static budget is due to 1000 units which were sold less , so your contribution margin will be reduced due to difference of sales volume which is -1000 x 10 , 10000 U

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Furqan Ali Raza
Accountant
Dubai
United Arab Emirates
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