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14-32(60 min.)Variance analysis, sales-mix, and sales-quantity variances.

1.  Actual Contribution Margins

Product

Actual

Selling

Price

Actual

Variable

Costs per

Unit

Actual

Contribution

Margin per

Unit

Actual

Sales

Volume in

Units

Actual

Contribution

Dollars

Actual

Contribution

Percent

Palm Pro

$349

$178

$171

11,000

$  1,881,000

16%

Palm CE

285

92

193

44,000

8,492,000

71%

PalmKid

102

73

29

 55,000

   1,595,000

13%

110,000

$11,968,000

100%

The actual average contribution margin per unit is $108.80 ($11,968,000 110,000 units).

Budgeted Contribution Margins

Product

Budgeted

Selling

Price

Budgeted

Variable

Costs per

Unit

Budgeted

Contribution

Margin per

Unit

Budgeted

Sales

Volume in

Units

Budgeted

Contribution

Dollars

Budgeted

Contribution

Percent

Palm Pro

$379

$182

$197

12,500

$  2,462,500

 19%

Palm CE

269

98

171

37,500

   6,412,500

 49%

Palm Kid

149

65

84

 50,000

   4,200,000

 32%

100,000

$13,075,000

100%

The budgeted average contribution margin per unit is $130.75 ($13,075,000 100,000 units).

2. Actual Sales Mix

Product

Actual

Sales

Volume in

Units

Actual

Sales Mix

Palm Pro

11,000

   10.0% (11,000 ÷ 110,000)

Palm CE

44,000

   40.0% (44,000 ÷ 110,000)

Palm Kid

 55,000

   50.0% (55,000 ÷ 110,000)

110,000

 100.0%

Budgeted Sales Mix

Product

Budgeted

Sales

Volume in

Units

Budgeted

Sales Mix

Palm Pro

12,500

 12.5% (12,500 ÷ 100,000)

14-37

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