D QUESTION 3 - REVENUE VARIANCE ANALYSIS (24 Marks) Version ABC Co. manufactures widgets and has the following operating information for the past year: Product Line Budgeted Unit Sales Budgeted Unit Contribution Margin Budgeted Unit Price $15 5 A 12,000 28.000 40.000 $85 565 $30 Product Line Actual Unit Contribution Actual Unit Sales Actual Unit Price 10 Margin 11 16,800 586 $16 12 B 25x200 $62 $28 13 42.000 14 Industry sales volume was estimated at 250,000 units. Actual industry sales were 300,000 units for the year. 15 16 17 Required: (For each variance, state whether the variance is favorable or unfavorable.) 18 19 1. Calculate the sales volume variances for each of the product line and in total. (4 marks) 20 21 22 23 24 25 26 2. Calculate the sales mix variances for each of the product line and in total. (4 marks) 27 28 D 25 26 2. Calculate the sales mix variances for each of the product line and in total. (4 marks) 27 28 29 30 31 33 34 25 36 37 38 39 40 3. Calculate the sales quantity variance for the company (4 marks) 41 43 44 45 46 48 49 50 51 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) 14 66 57