Tiger Corporation sells two models of golf gloves. The budgeted per-unit price is $10.95 for Standard and
Question:
Tiger Corporation sells two models of golf gloves. The budgeted per-unit price is $10.95 for Standard and $24.95 for Ultra. The budget called for sales of 400,000 Standards and 180,000 Ultras during the current year. Actual results showed sales of 300,000 Standards, with a price of $12.10 per unit, and 200,000 Ultras, with a price of $26.00 per unit. The standard variable cost is $5 per unit for a Standard and $10 per unit for Ultras.
Required Compute each of the following variances from a contribution-margin perspective. (Hint: Use the formulas given in Appendix C but substitute each product’s contribution margin for its sales price.) Round dollar amounts to nearest whole number.
a. Sales-volume variance.
b. Sales-mix and sales-quantity variances.
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto