Triple Delight is a foodstand located on a busy corner in the local business district. On average

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Triple Delight is a foodstand located on a busy corner in the local business district. On average it sells three cheeseburgers and one fishwich for every four hamburgers sold. The following data were culled from its operation for 2010:

Total operating income variance

Hamburger ................$18,000 Unfavorable

Cheeseburger ............... 50,000 Favorable

Fishwich ................. 10,000 Unfavorable

Sales quantity variance

Hamburger ................ 14,000 Favorable

Cheeseburger ............... 15,000 Favorable

Fishwich ................ 1,000 Favorable

Sales mix variance

Hamburger ............... 2,240 Unfavorable

Cheeseburger .............. 4,800 Unfavorable

Fishwich .................. 1,600 Favorable

Fixed costs variances ........... 0

Market share variance ............$96,000 Unfavorable

Market size variance ...........126,000 Favorable

Change in market share .......... 4%

Fixed cost flexible budget variance ...... 0

The estimated total volume for the foodstands in the region was 2,500,000 units. Consistent good weather pushed the total volume for the year to 4,000,000.


Required

Determine the following:

1. Budgeted weighted-average contribution margin.

2. Budgeted and actual market shares.

3. Budget and actual total units sold.

4. Sales quantity variances for fishwich.

5. Budgeted contribution margin of each product.

6. Actual sales mix of each product.

7. Budget and actual units sold for each product.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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