B E F A D QUESTION 3 - REVENUE VARIANCE ANALYSIS (24 Marks) Version C ABC Co. manufactures widgets and has the following operating information for the past year: Product Line Budgeted Unit Price A B Budgeted Unlt Sales 12,000 28.000 40.000 $85 Budgeted Unit Contribution Margin $45 $30 $65 Product Line Actual Unit Sales Actual Unit Price A B 16,800 25,200 42.000 $86 $62 Actual Unit Contribution Margin $46 $28 Industry sales volume was estimated at 250,000 units. Actual industry sales were 300,000 units for the year, Required: (For each variance, state whether the variance is favorable or unfavorable.) 1. Calculate the sales volume variances for each of the product line and in total. (4 marks) 2. Calculate the sales mix variances for each of the product line and in total. (4 marks) 3. Calculate the sales quantity variance for the company. (4 marks) 4. Calculate market share and market size variances for the company as a whole. (6 marks). 5.Summarize the variances. Comment on ABC's performance over last year and what may have caused the variances from required 1-4. Based on your evaluation, what recommendation(s) can you provide for ABC? (6 marks) 5. Summarize the variances. Comment on ABC's performance over last year and what may have caused the variances from required 1-4. Based on your evaluation, what recommendation(s) can you provide for ABC? (6 marks)