Jim Snow, the owner of Home Comfort has asked you to investigate the sales of three...

 

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Jim Snow, the owner of Home Comfort has asked you to investigate the sales of three mattress sizes sold to retailers. You are asked to explain the difference in total for the three mattresses sized 36 inches, 48 inches, and 54 inches. Note: Use three decimal places for rounding (Including price, contribution margins, and product mix percentages. Sales (in units) Selling price Variable costs Direct materials Direct labour Variable overhead Exhibit 1 Budgeted data Expected total market for Mattresses Sales (in units) Mattress Sizes 36 inches 48 inches 5,200 300 100 60 20 Exhibit 2: Actual data 36 inches 7,000 7,200 345 120 60 20 64,000 Mattress Sizes 48 inches 6,600 54 inches 3,600 375 145 75 20 54 inches 4,200 Selling price Variable costs Direct materials Direct labour Variable overhead Expected total market for Mattresses Sales (in units) Selling price Variable costs Direct materials Direct labour Variable overhead 300 Actual total market for Mattresses 100 60 20 Exhibit 2: Actual data 36 inches 7,000 300 110 60 20 343 120 60 20 64,000 Mattress Sizes 48 inches 6,600 345 125 60 20 89000 375 145 75 20 54 inches 4,200 375 140 75 20 Required: Explain using, flexible budget variance, sales mix, sales quantity, sales volume, sales market share, and market size variances the reason for the difference in total contribution margin. Jim Snow, the owner of Home Comfort has asked you to investigate the sales of three mattress sizes sold to retailers. You are asked to explain the difference in total for the three mattresses sized 36 inches, 48 inches, and 54 inches. Note: Use three decimal places for rounding (Including price, contribution margins, and product mix percentages. Sales (in units) Selling price Variable costs Direct materials Direct labour Variable overhead Exhibit 1 Budgeted data Expected total market for Mattresses Sales (in units) Mattress Sizes 36 inches 48 inches 5,200 300 100 60 20 Exhibit 2: Actual data 36 inches 7,000 7,200 345 120 60 20 64,000 Mattress Sizes 48 inches 6,600 54 inches 3,600 375 145 75 20 54 inches 4,200 Selling price Variable costs Direct materials Direct labour Variable overhead Expected total market for Mattresses Sales (in units) Selling price Variable costs Direct materials Direct labour Variable overhead 300 Actual total market for Mattresses 100 60 20 Exhibit 2: Actual data 36 inches 7,000 300 110 60 20 343 120 60 20 64,000 Mattress Sizes 48 inches 6,600 345 125 60 20 89000 375 145 75 20 54 inches 4,200 375 140 75 20 Required: Explain using, flexible budget variance, sales mix, sales quantity, sales volume, sales market share, and market size variances the reason for the difference in total contribution margin.

Answer rating: 100% (QA)

To explain the difference in total contribution margin for the three mattress sizes 36 inches 48 inches and 54 inches we can break down the variance a... View the full answer