Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: Product X Product Y Total Sales $ 281,000 $ 378,000 $ 659,000 Variable Costs 168,600 245,700 414,300 Contribution Margin $ 112,400 $ 132,300 $ 244,700 Fixed costs 124,000 102,000 226,000 Operating Income (Loss) $ (11,600 ) $ 30,300 $ 18,700 Selling Price per unit $ 100 $ 50 The following actual operating results were reported after the year was over: Product X Product Y Total Sales $ 367,600 $ 547,600 $ 915,200 Variable Costs 238,900 225,500 464,400 Contribution Margin $ 128,700 $ 322,100 $ 450,800 Fixed costs 140,000 117,500 257,500 Operating Income (Loss) $ (11,300 ) $ 204,600 $ 193,300 Units Sold 3,190 12,300 The contribution margin sales volume variance for Product Y is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $8,295 favorable. $82,950 favorable. $29,000 favorable. $47,000 unfavorable. $57,000 unfavorable.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Nappon Co. has two products named X and Y. The firm had the following
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 281,000 | $ | 378,000 | $ | 659,000 | ||||||
| Variable Costs | 168,600 | 245,700 | 414,300 | |||||||||
| Contribution Margin | $ | 112,400 | $ | 132,300 | $ | 244,700 | ||||||
| Fixed costs | 124,000 | 102,000 | 226,000 | |||||||||
| Operating Income (Loss) | $ | (11,600 | ) | $ | 30,300 | $ | 18,700 | |||||
| Selling Price per unit | $ | 100 | $ | 50 | ||||||||
The following actual operating results were reported after the year was over:
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 367,600 | $ | 547,600 | $ | 915,200 | ||||||
| Variable Costs | 238,900 | 225,500 | 464,400 | |||||||||
| Contribution Margin | $ | 128,700 | $ | 322,100 | $ | 450,800 | ||||||
| Fixed costs | 140,000 | 117,500 | 257,500 | |||||||||
| Operating Income (Loss) | $ | (11,300 | ) | $ | 204,600 | $ | 193,300 | |||||
| Units Sold | 3,190 | 12,300 | ||||||||||
The contribution margin sales volume variance for Product Y is: (Round your intermediate calculations to 2 decimal places.)
-
$8,295 favorable.
-
$82,950 favorable.
-
$29,000 favorable.
-
$47,000 unfavorable.
-
$57,000 unfavorable.
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