Green Coffee Inc. sells two types of coffee, Dark Roast and Light Roast. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for March: Budgeted Actual Dark Light Dark Light Price per kilogram $25 $30 $28 $25 Variable cost per kilogram 16 18 15 20 Contribution margin $ 9 $12 $13 $ 5 Sales (in kg) 8,000 9,000 7,000 8,000 Budgeted fixed costs are $70,000. Actual fixed costs are $76,000.

Required: Calculate the level 0 - 2 variances for the contribution margin, for the company for March.

Answer rating: 100% (QA)

CALCULATION OF BUDGETED PROFITCONTRIBUTION MARGIN SA... View the full answer