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 bookkeep- ing to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows: OBJECTIVE 5 OBJECTIVE 5 CMA Basic Complete 2,000 400 $140 $300 $85 $240 Basic Complete 1,950 460 $145 $290 $90 $242 Sales (rental units) Selling price Variable expenses Haysbert had budgeted the following amounts: Sales (units) Selling price Variable expenses Required: 1. Calculate the contribution margin variance. 2. Calculate the contribution margin volume variance. 3. Calculate the sales mix variance.
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 bookkeep- ing to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows: OBJECTIVE 5 OBJECTIVE 5 CMA Basic Complete 2,000 400 $140 $300 $85 $240 Basic Complete 1,950 460 $145 $290 $90 $242 Sales (rental units) Selling price Variable expenses Haysbert had budgeted the following amounts: Sales (units) Selling price Variable expenses Required: 1. Calculate the contribution margin variance. 2. Calculate the contribution margin volume variance. 3. Calculate the sales mix variance.
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