Cottesloe Boogie manufactures boogie boards. The company's performance report for November is as follows: ____________________________ Actual ______________________
Question:
Cottesloe Boogie manufactures boogie boards. The company's performance report for November is as follows:
____________________________ Actual ______________________ Budget
Boogie boards sold .................. 6 000 ..................................... 8 000
Variable costs ....................... 145 000 .................................. $300 00
Contribution margin ................ 95 000 ................................... 180 000
Fixed costs ........................... 84 000 ..................................... 80 000
Operating profit .................. $ 11 000 .................................. $ 40 000
The company uses a flexible budget to analyse its performance and to measure the effect on operating profit of the various factors affecting the difference between budgeted and actual operating profit.
Required:
Calculate the sales price and sales volume variance for November, and indicate whether each is fovourable or unfavourable?
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Step by Step Answer:
1 Sales price variance actual sales price expected sales price actual sales vo...View the full answer
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
