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? Data table Budget for 2020 Selling Variable Cost Cartons Selling per Carton Sold Price 132,000 $11.60 S 88,000 $24.40 S Product Price Costor $11.00 $ imba $ 23.00 $ 6.40 16.15 Actual for 2020 Variable Cost Cartons per Carton Sold 138,600 59,400 7.40 16.35

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? Data table Budget for 2020 Selling Variable Cost Cartons Selling per Carton Sold Price 132,000 $11.60 S 88,000 $24.40 S Product Price Costor $11.00 $ imba $ 23.00 $ 6.40 16.15 Actual for 2020 Variable Cost Cartons per Carton Sold 138,600 59,400 7.40 16.35

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 32P: Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows:...

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