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 $ Basic 1,950 $145 $90 Complete 400 $300 $240 Favorable 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 Complete 460 $290 $242 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.
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 $ Basic 1,950 $145 $90 Complete 400 $300 $240 Favorable 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 Complete 460 $290 $242 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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 31P: Haysbert Company provides management services for apartments and rental units. In general, Haysbert...
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