White Mountain Sled Company manufactures childrens snow sleds. The companys performance report for November is as follows,
Question:
White Mountain Sled Company manufactures children’s snow sleds. The company’s performance report for November is as follows,
The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue.
Required:
Compute the following variances and indicate whether each is favorable or unfavorable.
1. November sales price variance.
2. November sales volumevariance.
Transcribed Image Text:
Budget 6,000 $240,000 $300,000 180,000 90,000 $120,000 80,000 6,000 40,000 Actual Sleds sold Sales Variable costs Contribution margin Fixed costs Operating income 5,000 150,000 84,000
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