Noble Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year (all data is in millions).
Sales ............................................................. $1,248,000
Variable Cost of Goods Sold ......................... $ 652,800
Variable Operating Expenses ......................... $ 225,600
Direct Fixed Manufacturing Overhead .......... $ 156,600
Direct Fixed Operating Expenses .................... $ 26,250
Common Fixed Expenses ................................ $ 15,450
Budgeted data for the same time period for the pharmaceutical segment are as follows (all data is in millions):
Budgeted sales in units .............................................................................. 8,000
Budgeted average selling price per unit ..................................................... $ 150
Variable Cost of Goods Sold per unit ......................................................... $ 80
Variable Operating Expenses per unit ......................................................... $ 30
Direct Fixed Manufacturing Overhead (in total) ................................ $145,000
Direct Fixed Operating Expenses (in total) .......................................... $ 25,000
Common Fixed Expenses Allocated to the Pharmaceutical Segment .. $ 15,000
Prepare a segment margin performance report for the pharmaceutical segment. In this report, be sure to include lines for the contribution margin, the segment margin, and operating income. Use Exhibit 10-4 in the chapter as a guide. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%).