Question

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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