1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Selling per Carton Sold Price 132,000 $11.60 S 88,000 $24.40 S Product Price Costor $11.00 $ imba $ 23.00 $ 6.40 16.15 Actual for 2020 Variable Cost Cartons per Carton Sold 138,600 59,400 7.40 16.35

1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Selling per Carton Sold Price 132,000 $11.60 S 88,000 $24.40 S Product Price Costor $11.00 $ imba $ 23.00 $ 6.40 16.15 Actual for 2020 Variable Cost Cartons per Carton Sold 138,600 59,400 7.40 16.35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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