Space Infonautics, Inc., produces handheld Windows CE-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is

Question:

Space Infonautics, Inc., produces handheld Windows CE™-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and MobileKid is a stripped-down version for the young adult market. You are Space Infonautics’

senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget.

Budgeted and actual operating data for the company’s third quarter of 2017 are as follows:

image text in transcribed

1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017.
2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017.
3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017.
(Calculate all variances in terms of contribution margins.)
4. Given that your CEO is known to have temper tantrums, you want to be well prepared for this meeting.
In order to prepare, write a paragraph or two comparing actual results to budgeted amounts.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9781292211541

16th Global Edition

Authors: Srikant Datar, Madhav Rajan

Question Posted: