Classics, Ltd., details cars. Classics wants to compare this quarter's results with those for last quarter, which is believed to be typical for operations. Assume that the following information is provided. Last Quarter This Quarter Number of detailings 510 663 $87, 210 28, 620 $70, 200 34,020 Revenues Variable costs Contribution margin $58, 590 $36, 180 Required: a. Compute the flexible budget and sales activity variance and prepare a profit variance analysis. (Hint Use last quarter as the master budget and this quarter as "actual.") b. What impact did the changes in number of detailings and average revenues (i.e., sales price) have on Classics, Ltd.'s contribution margin?

Classics, Ltd., details cars. Classics wants to compare this quarter's results with those for last quarter, which is believed to be typical for operations. Assume that the following information is provided. Last Quarter This Quarter Number of detailings 510 663 $87, 210 28, 620 $70, 200 34,020 Revenues Variable costs Contribution margin $58, 590 $36, 180 Required: a. Compute the flexible budget and sales activity variance and prepare a profit variance analysis. (Hint Use last quarter as the master budget and this quarter as "actual.") b. What impact did the changes in number of detailings and average revenues (i.e., sales price) have on Classics, Ltd.'s contribution margin?

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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