Young, Inc., manufactures cardboard boxes. Young has shared the most recent performance report with you as follows:

a. What are the master budget revenues?

b. What are the master budget variable costs?

c. What is the master budget contribution margin?

d. The measure of ineffectiveness is the contribution margin lost from the units not produced and sold as expected (the sales volume contribution margin amount). What is that amount of effectiveness or ineffectiveness for Young, Inc., and of what relevance is it to the company?

e. What is the contribution margin flexible budget variance?

f. Was Young efficient? Support your answer with numbers.

g. If the company were to break down the variable costs flexible budget variance into rate and efficiency variances for the product costs such as direct materials and direct labor, what insights could the company gain?

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Analysis Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Master Budget 10,300 @ $50? @ $28? @$22? $104,400 $122,200 Sales Volume Variances 100 ? ? ? 0 $2,200 U Flexible Income Budget Statement Flexible Budget Variances ? 10,200 10,200 $510,000 $530,400 $20,400 F $285,600 $336,600 $51,000 U ? ? $104,400 $110,000 $120,000 ? ? $5,600 U ?