Basic 2,000 $140 $85 Complete 400 $300 $240 Sales (rental units) Selling price Variable expenses aysbert had budgeted the following amounts:
Basic 2,000 $140 $85 Complete 400 $300 $240 Sales (rental units) Selling price Variable expenses aysbert had budgeted the following amounts:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with show all calculation thanku
Transcribed Image Text:Problem 18.31
Contribution Margin Variance, Contribution Margin Volume Variance, Sales Mix Variance
Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic
and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it
to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a per-rental unit basis.
Actual results from last year are as follows:
Sales (rental units)
Selling price
Variable expenses
Haysbert had budgeted the following amounts:
Sales (units)
Selling price
Variable expenses
Basic
$
2,000
$140
$85
Required:
1. Calculate the contribution margin variance.
$ 4670 Favorable
Favorable
Complete
400
$300
$240
Basic Complete
460
$290
$242
1,950
$145
$90
2. Calculate the contribution margin volume variance. Round the budgeted average unit contribution margin to four decimal places. Round your final
answer to the nearest cent.
$ 536.6 Unfavorable
3. Calculate the sales mix variance. Round the budgeted average unit contribution margin to four decimal places. Round your final answer to the
nearest cent.
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