Question: | Variance analysis, multiple products. The Robin's Basket operates a chain of Italian gelato stores. Although the Robin's Basket charges customers the same price
| Variance analysis, multiple products. The Robin's Basket operates a chain of Italian gelato stores. Although the Robin's Basket charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D.C., store for August 2017 are as follows: Budget for August 2017 Selling Price per Pint Variable Cost per Pint Contribution Margin per Pints Sales Volume in Pints Mint chocolate chip $9.00 $4.80 $4.20 35,000 Vanilla 9.00 3.20 5.80 45,000 Rum raisin 9.00 5.00 4.00 20,000 100,000 Actual for August 2017 Selling Price Variable Cost Contribution Sales Volume per Pint per Pound Margin per Pound in Pounds Mint chocolate chip $9.00 $4.60 $4.40 33,750 Vanilla 9.00 3.25 5.75 56,250 Rum raisin 9.00 5.15 3.85 22,500 112,500 Required: The Robin's Basket focuses on contribution margin in its variance analysis. 1. Compute the total sales-volume variance for August 2017. 2. Compute the total sales-mix variance for August 2017. 3. Compute the total sales-quantity variance for August 2017. 4. Comment on your results in requirements 1, 2, and 3.
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1 Compute the total salesvolume variance for August 2017 The total salesvolume variance measures the difference between the actual sales volume and the budgeted ... View full answer
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