Required Information [The following information applies to the questions displayed below.] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance 4. Sales mix variance Industry Budget Sales quantity variance Budgeted 991,500 787,400 40,000 30,000 70,000 124 $ 126 80 184 $ 44 $ 22 Industry Actual Actual 1,014,550 717,750 40,350 32,500 72,850 123 128 $1,760,000 $1,735,050 660,000 1,365,000 $34.5714 80 86 43 42 The budget was prepared with the expectation that the currency exchange rate would be $1.47 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.78 per euro. Budgeted wt Avg CM Required: 1. What is the market share variance? 2. What is the market size variance? 3. What is the selling price variance and sales volume variance? 4. What is the sales mix variance and sales quantity variance? (For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.)
Required Information [The following information applies to the questions displayed below.] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance 4. Sales mix variance Industry Budget Sales quantity variance Budgeted 991,500 787,400 40,000 30,000 70,000 124 $ 126 80 184 $ 44 $ 22 Industry Actual Actual 1,014,550 717,750 40,350 32,500 72,850 123 128 $1,760,000 $1,735,050 660,000 1,365,000 $34.5714 80 86 43 42 The budget was prepared with the expectation that the currency exchange rate would be $1.47 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.78 per euro. Budgeted wt Avg CM Required: 1. What is the market share variance? 2. What is the market size variance? 3. What is the selling price variance and sales volume variance? 4. What is the sales mix variance and sales quantity variance? (For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sh8
![Required Information
[The following information applies to the questions displayed below.]
Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the
same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both
beers also have the same variable production costs, though the export product has slightly higher variable costs due to
shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two
beers are shown below:
Sales units (cases)
Domestic
Export
Total
Price per case
Domestic
Export
Variable cost per case
Domestic
Export
Contribution margin per case
Domestic
Export
Total contribution margin
Domestic
Export
Sales units (cases)
Domestic
Export
1. Market share variance
2. Market size variance
3. Selling price variance
Sales volume variance
$
4. Sales mix variance
$
Sales quantity variance
$
Industry
Budget
Budgeted
40,000
30,000
70,000
991,500
787,400
124 $
126
80
184
$
44 $
22
Industry
Actual
Actual
1,014,550
717,758
40,350
32,500
72,850
$1,760,000 $1,735,050
660,000 1,365,000
123
128
80
86
43
42
The budget was prepared with the expectation that the currency exchange rate would be $1.47 per euro. The actual
average exchange rate for the period reflected the falling dollar, at $1.78 per euro.
Budgeted
Wt Avg CM
Required:
1. What is the market share variance?
2. What is the market size variance?
3. What is the selling price variance and sales volume variance?
4. What is the sales mix variance and sales quantity variance?
(For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.)
$34.5714](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6f999b7-6deb-4015-91d6-5f59e418959d%2F506d362e-eabf-42ae-9503-7496668b7fd8%2Fm19jwmp_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the
same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both
beers also have the same variable production costs, though the export product has slightly higher variable costs due to
shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two
beers are shown below:
Sales units (cases)
Domestic
Export
Total
Price per case
Domestic
Export
Variable cost per case
Domestic
Export
Contribution margin per case
Domestic
Export
Total contribution margin
Domestic
Export
Sales units (cases)
Domestic
Export
1. Market share variance
2. Market size variance
3. Selling price variance
Sales volume variance
$
4. Sales mix variance
$
Sales quantity variance
$
Industry
Budget
Budgeted
40,000
30,000
70,000
991,500
787,400
124 $
126
80
184
$
44 $
22
Industry
Actual
Actual
1,014,550
717,758
40,350
32,500
72,850
$1,760,000 $1,735,050
660,000 1,365,000
123
128
80
86
43
42
The budget was prepared with the expectation that the currency exchange rate would be $1.47 per euro. The actual
average exchange rate for the period reflected the falling dollar, at $1.78 per euro.
Budgeted
Wt Avg CM
Required:
1. What is the market share variance?
2. What is the market size variance?
3. What is the selling price variance and sales volume variance?
4. What is the sales mix variance and sales quantity variance?
(For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.)
$34.5714
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