Classic Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and

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Classic Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for 2010 follow:


Budgeted Data for 2010
 Actual Operating Results in 2010
FlavorGallonsSelling Price per GallonVariable Costs per Gallon
GallonsSelling Price per GallonVariable Costs per Gallon
Vanilla 250,000$1.20$0.50
180,000$1.00$0.45
Chocolate 300,0001.500.60
270,0001.350.50
Strawberry 200,0001.800.70
330,0002.000.75
Anchovy 50,0002.501.00
180,0003.001.20


Required
1. Compute these variances for the individual flavors and total sold:
a. Sales volume.
b. Sales mix. Extend mix calculation to five decimal places.
c. Sales quantity.
2. Assess sales in of 2010 based on youranalyses.

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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