Robinson Company has two products, A and B. Robinson's budget for August follows: Sales Variable cost Contribution margin Fixed cost Operating income Selling price Sales Variable cost Contribution margin Fixed cost $ 135,000 108,000 $ 27,000 $ 120 On September 1, these operating results for August were reported: Operating Results Operating income Units sold LLO Master Budget Product A $ 324,000 189,000 Flexible-budget variance Sales volume variance Sales quantity variance Sales mix variance Product A Product B $ 378,000 252,000 $ 126,000 63,000 $ 63,000 $ 60 $ 199,500 123,500 $ 76,000 108,000 $ (32,000) 1,900 Required: 1. For each product, determine the following variances measured in dollars of contribution margin: Product B $ 471,200 326,800 $ 144,400 63,000 $ 81,400 7,600 Product A Product B
Robinson Company has two products, A and B. Robinson's budget for August follows: Sales Variable cost Contribution margin Fixed cost Operating income Selling price Sales Variable cost Contribution margin Fixed cost $ 135,000 108,000 $ 27,000 $ 120 On September 1, these operating results for August were reported: Operating Results Operating income Units sold LLO Master Budget Product A $ 324,000 189,000 Flexible-budget variance Sales volume variance Sales quantity variance Sales mix variance Product A Product B $ 378,000 252,000 $ 126,000 63,000 $ 63,000 $ 60 $ 199,500 123,500 $ 76,000 108,000 $ (32,000) 1,900 Required: 1. For each product, determine the following variances measured in dollars of contribution margin: Product B $ 471,200 326,800 $ 144,400 63,000 $ 81,400 7,600 Product A Product B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Robinson Company has two products, A and B. Robinson's budget for August follows:
Master Budget
Product A
$ 324,000
189,000
Product B
$ 378,000
252,000
$ 126,000
63,000
$ 135,000
108,000
$ 27,000
$ 63,000
Selling price
$ 120
$ 60
On September 1, these operating results for August were reported:
Operating Results
Sales
Variable cost
Contribution margin
Fixed cost
Operating income
Sales
Variable cost
Contribution margin
Fixed cost
Operating income
Units sold
TH
Product A
Flexible-budget variance
Sales volume variance
Sales quantity variance
Sales mix variance
$ 199,500
123,500
$ 76,000
108,000
$ (32,000)
1,900
Required:
1. For each product, determine the following variances measured in dollars of contribution margin:
Product B
$ 471,200
326,800
$ 144,400
63,000
$ 81,400
7,600
Product A
Product B
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