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Required: 1. Calculate the contribution margin variance. $ 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. 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. Favorable ✔

Required: 1. Calculate the contribution margin variance. $ 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. 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. Favorable ✔

FINANCIAL ACCOUNTING
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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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: Basic Complete Sales (rental units) 2,000 Selling price. $140 Variable expenses $85 Haysbert had budgeted the following amounts: Basic Complete Sales (rental units) 1,950 Selling price $145 Variable expenses $90 -400 $300 $240 460 $290 $242
Transcribed Image Text: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: Basic Complete Sales (rental units) 2,000 Selling price. $140 Variable expenses $85 Haysbert had budgeted the following amounts: Basic Complete Sales (rental units) 1,950 Selling price $145 Variable expenses $90 -400 $300 $240 460 $290 $242
Required: 1. Calculate the contribution margin variance. 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. 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. Favorable
Transcribed Image Text:Required: 1. Calculate the contribution margin variance. 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. 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. Favorable
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