Soda-King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2014 are

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Soda-King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2014 are as follows:
Soda-King manufactures and sells two soft drinks: Kola and Limor.

1. Compute the total sales-volume variance, the total sales-mix variance and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.
2. What inferences can you draw from the variances computed in requirement 1?

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 Accounting A Managerial Emphasis

ISBN: 978-0133392883

6th Canadian edition

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

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