Sales Mix Variance Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Toaster Oven Convection Oven Total Sales: ($1,000 × 25,000) $25,000,000 ($500 × 15,000) $7,500,000 $32,500,000 Variable expenses 6,250,000 1,500,000 7,750,000 Contribution margin $18,750,000 $6,000,000 $24,750,000 Actual Amounts: Toaster Oven Convection Oven Total Sales: ($1,000 × 25,500) $25,500,000 ($500 × 13,500) $6,750,000 $32,250,000 Variable expenses 6,375,000 1,350,000 7,725,000 Contribution margin $19,125,000 $5,400,000 $24,525,000 1. Calculate the sales mix variance
Sales Mix Variance Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Toaster Oven Convection Oven Total Sales: ($1,000 × 25,000) $25,000,000 ($500 × 15,000) $7,500,000 $32,500,000 Variable expenses 6,250,000 1,500,000 7,750,000 Contribution margin $18,750,000 $6,000,000 $24,750,000 Actual Amounts: Toaster Oven Convection Oven Total Sales: ($1,000 × 25,500) $25,500,000 ($500 × 13,500) $6,750,000 $32,250,000 Variable expenses 6,375,000 1,350,000 7,725,000 Contribution margin $19,125,000 $5,400,000 $24,525,000 1. Calculate the sales mix variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sales Mix Variance
Ioannis Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.
Budgeted Amounts:
| Toaster Oven |
Convection Oven |
Total | ||||
| Sales: | ||||||
| ($1,000 × 25,000) | $25,000,000 | |||||
| ($500 × 15,000) | $7,500,000 | $32,500,000 | ||||
| Variable expenses | 6,250,000 | 1,500,000 | 7,750,000 | |||
| Contribution margin | $18,750,000 | $6,000,000 | $24,750,000 |
Actual Amounts:
| Toaster Oven |
Convection Oven |
Total | ||||
| Sales: | ||||||
| ($1,000 × 25,500) | $25,500,000 | |||||
| ($500 × 13,500) | $6,750,000 | $32,250,000 | ||||
| Variable expenses | 6,375,000 | 1,350,000 | 7,725,000 | |||
| Contribution margin | $19,125,000 | $5,400,000 | $24,525,000 |
1. Calculate the sales mix variance
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