The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $ 3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 - X Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $ 5.50 Done Cases Sold 520,000 900,000 1,690,000 X
The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $ 3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 - X Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $ 5.50 Done Cases Sold 520,000 900,000 1,690,000 X
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.
Question
Transcribed Image Text:The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows:
(Click the icon to view the budgeted data.)
(Click the icon to view the actual data.)
Required
1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.
2. What inferences can you draw from the variances computed in requirement 1?
Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.
Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022.
Actual CM
Kola
Lima
Oranga
Total
Budgeted data
Kola
Lima
Oranga
Budget for 2022
Selling
Price
$ 6.80
$ 4.80
$ 7.90
Print
Variable Cost
per Case
$ 4.80
$3.40
$ 5.40
Done
Cases
Sold
560,000
640,000
1,900,000
X
(...)
Actual data
Kola
Lima
Oranga
Actual for 2022
Selling
Price
$ 7.00
$ 5.05
$ 7.70
Print
Variable Cost
per Case
$ 5.30
$ 3.35
$5.50
Done
Cases
Sold
520,000
900,000
1,690,000
- X
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