Question: Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows: Budget Data Product Selling price per unit Variable
Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows:
| Budget Data | ||||||
| Product | Selling price per unit | Variable cost per unit | CM per unit | Sales volume in units | Sales mix (based on units) | Total Contribution Margin |
| Aces | 10.00 | 2.00 | 8.00 | 123,000 | 61.50% | 984,000 |
| Bells | 15.00 | 10.00 | 5.00 | 77,000 | 38.50% | 385,000 |
| 200,000 | 1,369,000 | |||||
| Actual Data | ||||||
| Product | Selling price per unit | Variable cost per unit | CM per unit | Sales volume in units | Sales mix (based on units) | Total Contribution Margin |
| Aces | 11.00 | 2.50 | 8.50 | 115,000 | 63.89% | 977,500 |
| Bells | 14.50 | 10.00 | 4.50 | 65,000 | 36.11% | 292,500 |
| 180,000 | 1,270,000 | |||||
| Product | Actual Market size in units | Budgeted Market Size in Units |
| Aces | 200,000 | 210,000 |
| Bells | 100,000 | 90,000 |
Required:
Calculate the following variances:
- Sales Mix Contribution Margin Variance
- Sales Quantity Contribution Margin Variance
- Market Share Variance
- Market Size Contribution Variance
- What conclusion can you make about the sales during the year?
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