Question: Please help me on my homework so understand this problem better. Thank you. Company A has two products: Desktop and Laptop. Budgeted and actual results
Please help me on my homework so understand this problem better. Thank you.

Company A has two products: Desktop and Laptop. Budgeted and actual results for 2017 are as follows: Budget data Selling price Variable CM/Unit Sales Mix Sales volume cost/Unit in Units Desktop $980 $755 225 60% 93,000 Laptop $1,050 $775 275 40% 62,000 Total 100% 155,000 Actual results Selling price Variable CM/Unit Sales Mix Sales volume in cost/Unit Units Desktop $975 $748 227 66.67% 100,000 Laptop $1,049 $785 264 33.33% 50,000 Total 100% 150,000 The budgeted market share was 20%. The total computer market was estimated to reach sales of 775,000 units. However, actual total sales volume was 800,000 units. Requirements: 1) What is the static-budget variance? (1 point) 2) What is the flexible-budget variance? (1 point) 3) What is the sales-volume variance? (1 point) 4) What is the sales-mix variance? (1.5 point) How do you interpret the sales-mix variance? (1.5 point) 5) What is the sales-quantity variance? (1.5 point) How do you interpret the sales-quantity variance? (1.5 point) 6) What is the budgeted Contribution margin per composite unit for the budgeted sales mix? (2 points) 7) What is the budgeted Contribution margin per composite unit for the actual sales mix? (3 points) 8) What is the market share variance? (3 points) 9) What is the market size variance? (3 points) Can company A blame the market for its performance? (1 point) Why? (1 point) 10) Any suggestions for the managers in the next year? (at least 3 items)..? (3 points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
