Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and sells three (3) products, RG, KC and MG. During July 2019 the following budgeted and actual results were presented to you the management accountant for analysis:

1: Total sales margin variance.

2: As the management accountant list four (4) measures that you would adopt to have some degree of control over sales revenue.
 

 

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Budgeted Results Product Total Sales Volume/units Price $ $ Contribution margin per unit $ Total contribution margin $ RG 585,000 900 650 820 738,000 KC 500,000 500 1,000 850 MG 300,000 600 500 720 Total 2,000 425,000 432,000 1,595,000 Actual Results Product Total Volume/units Price $ Contribution Total contribution Sales $ margin per unit $ margin $ RG 500,000 500 1,000 800 400,000 KC 270,000 300 900 '900 270,000 MG 105,000 350 300 700 245,000 Total 1,150 915,000 Budgeted Results Product Total Sales Volume/units Price $ $ Contribution margin per unit $ Total contribution margin $ RG 585,000 900 650 820 738,000 KC 500,000 500 1,000 850 MG 300,000 600 500 720 Total 2,000 425,000 432,000 1,595,000 Actual Results Product Total Volume/units Price $ Contribution Total contribution Sales $ margin per unit $ margin $ RG 500,000 500 1,000 800 400,000 KC 270,000 300 900 '900 270,000 MG 105,000 350 300 700 245,000 Total 1,150 915,000

Answer rating: 100% (QA)

To analyze the variances and answer the questions we need to calculate various sales margin variances based on the budgeted and actual results provided Lets calculate each variance step by step a Sale... View the full answer