Ex. 18.31

Ch18 eBook Print Item Contribution Margin Variance, Contribution Margin Volume Variance, Sales Mix Varianoe Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising vacant units showing potential renters through them, and collecting monthly rent and remitting it to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a per rental unit basis. Actual results from last year are as follows Basic Complete Sales (rental units) 2,000 Selling price Variable expenses Haysbert had budgeted the following amounts 400 300 $240 $140 $85 Basic Complete 460 $290 $242 Sales (rental units)950 Selling price Variable expenses $90 Required 1. Calculate the contribution margin variance. $145 4,670 Favorable 2. Calculate the contribution margin volume variance. Round the budgeted average unit contribution margin to four decimal places. Round your final answer to the nearest cent 130X Unfavorable 3. Calculate the sales mix varianoe, Round the budgeted average unit contribution margin to four decimal places, Round your final answer to the nearest cent. 406.56X Favorable Feedbece