Question: The Robin s Basket operates a chain of Italian gelato stores

The Robin’s Basket operates a chain of Italian gelato stores. Although the Robin’s Basket charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D. C., store for August 2014 are as follows:

The Robin’s Basket focuses on contribution margin in its variance analysis.

1. Compute the total sales-volume variance for August 2014.
2. Compute the total sales-mix variance for August 2014.
3. Compute the total sales-quantity variance for August 2014.
4. Comment on your results in requirements 1, 2, and3.
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  • CreatedMay 14, 2014
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