Tempest Company manufactures two products-Alpha and Beta--which compete in the same industry The following information applies...

 

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Tempest Company manufactures two products-Alpha and Beta--which compete in the same industry The following information applies to the current year: Sales Units Actual Budget 23,100 31.900 Required: Alpha Beta Total fixed costs for Tempest: $500,000 20,000 Alpha 30,000 Beta Selling Price Actual Budget $22.00 $20.00 Alpha $35.00 $30.00 Beta Budgeted industry sales Actual industry sales Variable Cost per Unit Actual Budget $15.00 $14.00 $16.00 $18.00 1 Compute the following variance calculations for Tempest. Enter the final answer in the space provided. Ensure calculations can be traced to other work for part marks. (11 marks with marks ranging from 1.0 to 3.5 marks/item.) Variance F/U a. contribution margin sales mix variance for Alpha b. contribution margin t ce for Beta c. contribution margin t quantity variance for Alpha d. contribution margin sales volume variance for Alpha variance for Tempest 2,000,000 units 2.500,000 units What shift in sales mix is generally better? e. marke f. market size variance for Tempest 2 if the sales mix had changed in the opposite direction while achieving the same total units, would Tempest be better off financially? Why? What shift in sales mix is generally desireable? (3 marks) Would Tempest be better of financially? Why? Tempest Company manufactures two products-Alpha and Beta--which compete in the same industry The following information applies to the current year: Sales Units Actual Budget 23,100 31.900 Required: Alpha Beta Total fixed costs for Tempest: $500,000 20,000 Alpha 30,000 Beta Selling Price Actual Budget $22.00 $20.00 Alpha $35.00 $30.00 Beta Budgeted industry sales Actual industry sales Variable Cost per Unit Actual Budget $15.00 $14.00 $16.00 $18.00 1 Compute the following variance calculations for Tempest. Enter the final answer in the space provided. Ensure calculations can be traced to other work for part marks. (11 marks with marks ranging from 1.0 to 3.5 marks/item.) Variance F/U a. contribution margin sales mix variance for Alpha b. contribution margin t ce for Beta c. contribution margin t quantity variance for Alpha d. contribution margin sales volume variance for Alpha variance for Tempest 2,000,000 units 2.500,000 units What shift in sales mix is generally better? e. marke f. market size variance for Tempest 2 if the sales mix had changed in the opposite direction while achieving the same total units, would Tempest be better off financially? Why? What shift in sales mix is generally desireable? (3 marks) Would Tempest be better of financially? Why?

Answer rating: 100% (QA)

Lets calculate the variances as requested a Contribution Margin Sales Mix Variance for Alpha textAct... View the full answer