The Sasita Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20X5 were as follows:

Static Budget                     ZENITH                 House-Helper             Total

Number sold                        5,000                    20,000                       25,000

Contribution margin             $1,500,000           $3,000,000               $4,500,000

Actual Results                     ZENITH                House-Helper               Total

Number sold                        4,000                    28,000                        32,000

Contribution margin            $1,280,000            $3,920,000                 $5,200,000

Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the ZENITH and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.

1.What is the total sales-volume variance in terms of the contribution margin?

1. $900,000 favorable
2. $1,260,000 favorable
3. $200,000 unfavorable
4. $360,000 unfavorable

2.What is the total sales-quantity variance in terms of the contribution margin?

1. $200,000 unfavorable
2. $900,000 favorable
3. $360,000 unfavorable
4. $1,260,000 favorable