Question: The Jinwa Corporation sells two brands of wine glasses Plain

The Jinwa Corporation sells two brands of wine glasses, Plain and Chic. Jinwa provides the following information for sales in the month of June 2013:
Static-budget total contribution margin....... $5,600
Budgeted units to be sold of all glasses....... 2,000 units
Budgeted contribution margin per unit of Plain... $2 per unit
Budgeted contribution margin per unit of Chic... $6 per unit
Total sales-quantity variance............ $1,400 U
Actual sales-mix percentage of Plain......... 60%
All variances are to be computed in contribution-margin terms.
REQUIRED
1. Calculate the sales-quantity variances for each product for June 2013.
2. Calculate the individual-product and total sales-mix variances for June 2013. Calculate the individual-product and total sales-volume variances for June 2013.
3. Briefly describe the conclusions you can draw from the variances.

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  • CreatedJuly 31, 2015
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