21. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir Total (10,000 units) Sales $600,000 $400,000 Variable costs 230,000 (50,000 units) $1,000,000 Contribution $400.000 Margin $170.000 During the period there was an economic downturn. Sales of L'Amour dropped off, so Paris reduced its price. Actual sales were as follows Plaisir Total (7,500 @ $45) Sales $337,500 $288,000 Variable costs 153.000 (36,000 @ $8) $625,500 Margin $172,500 $135,000 The contribution margin sales quantity variance was: a) $204,500 U b) $156,750 U c) $175.500 U d) $204,500 F Answer: b Difficulty: Easy Learning Objective: Calculate and analyze sales mix and sales quantity variances. CPA: Management Accounting 22. Contribution margin sales volume variance can be further subdivided into: a) Contribution margin budget variance and contribution margin variance b) Contribution margin variance and contribution margin sales mix vanance c) Contribution margin sales quantity variance and 31, Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the contribution margin variance? a) $455U b) none c) $225F d) $455F Answer: d Difficulty: Easy Learning Objective: Calculate and analyze market share and industry volume variances. 32. Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the market share variance a) $104F b) $208F c) none d) $208U Answer: b Difficulty: Easy Learning Objective: Calculate and analyze market share and industry volume variances. 33. Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the market size variance? a) $247F b) $247U c) none d) $125F Answer: s Difficulty: Easy 21. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir Total (10,000 units) Sales $600,000 $400,000 Variable costs 230,000 (50,000 units) $1,000,000 Contribution $400.000 Margin $170.000 During the period there was an economic downturn. Sales of L'Amour dropped off, so Paris reduced its price. Actual sales were as follows Plaisir Total (7,500 @ $45) Sales $337,500 $288,000 Variable costs 153.000 (36,000 @ $8) $625,500 Margin $172,500 $135,000 The contribution margin sales quantity variance was: a) $204,500 U b) $156,750 U c) $175.500 U d) $204,500 F Answer: b Difficulty: Easy Learning Objective: Calculate and analyze sales mix and sales quantity variances. CPA: Management Accounting 22. Contribution margin sales volume variance can be further subdivided into: a) Contribution margin budget variance and contribution margin variance b) Contribution margin variance and contribution margin sales mix vanance c) Contribution margin sales quantity variance and 31, Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the contribution margin variance? a) $455U b) none c) $225F d) $455F Answer: d Difficulty: Easy Learning Objective: Calculate and analyze market share and industry volume variances. 32. Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the market share variance a) $104F b) $208F c) none d) $208U Answer: b Difficulty: Easy Learning Objective: Calculate and analyze market share and industry volume variances. 33. Given an actual market for ice cream of 64,000 litres, forecasted market for ice cream of 60,000 litres, actual sales of 3,200 litres, projected market share of 4.75%, and a standard contribution margin of $1.30. What is the market size variance? a) $247F b) $247U c) none d) $125F Answer: s Difficulty: Easy
