John Company manufactures three models of camping tents: the Out, the Rel and the Car. The following are the company budget and the results of operations for the year.

Budget Out RelCar

Sales-units          30,000         15,000        5,000

Sales price $           180 $           220 $        250

Actual   

Sales-units         30,250         22,000        2,750

Sales-dollars $ 5,747,500 $ 4,730,000 $ 632,500

Industry volume was budgeted at 1,000,000 tents and John estimated having 5% of the market. There were 1,375,000 tents sold in the market during the year and John actual market share was 4%.

Required:

Calculate the overall revenue budget variance

Break the budget variance into sales-price and sales-volume(quantity) variances

Break the sales-volume (quantity) variance into sales-mix and sales-quantity variances

Break the sales-volume (quantity) variance into the combined market-share and combined industry-volume variances

Answer rating: 100% (QA)

Basic Calculations Statement showing Budgeted sales Actual Sales value and Standard Sales Camping Tents Budgeted Units Budgeted price per unit Budgeted Sales Actual Quantity Units Actual Price per uni... View the full answer