3. Sunlight Corp. buys and sells two types of sunglasses in New York: Duma and Kool. Budgeted and actual results for 2020 are as follows: (Click the icon to view the budgeted and actual results.) Requirement 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. Begin by calculating the budgeted contribution margin for each product and in total. (Enter the sales mix as a whole number, X%.) Variable Cost CM per Units Sales Selling Price unit CM per unit 10 Sold 97990 Mix 41% Duma 21 11 979900 Kool 23 16 7 141010 59 2256160 239000 100 3236060 Total % Now calculate the actual contribution margin for each product and in total. (Enter the sales mix as a whole number, X%.) Variable Cost CM per Units Sales Selling Price per unit unit Sold Mix CM Duma % Kool Total % Compute the total sales-volume variance. (Calculate all variances in terms of contribution margin?.) Show results for each product in your computations. Determine the formula for sales-volume variance, then compute the sales-volume variance for each type of sunglasses and in total for Sunlight in 2020. Label each variance as favorable (F) or unfavorable (U). (Enter all variances as positive numbers. Abbreviation used: qty = quantity.) Sales-volume (1) (2) (3) variance (4) Duma x (5) Kool The total sales-volume variance is Now compute the total sales-mix variance. (Calculate all variances in terms of contribution margin?.) Show results for each product in your computations. Now determine the formula for the sales-mix variance, then calculate the variance for each type of sunglasses and in total for 2020. Label each variance as favorable (F) or unfavorable (U). (Enter any percentages as a whole number. Enter all variances as positive numbers. Abbreviations used: CM = contribution margin: VC = variable cost.) Actual Actual Budgeted Budgeted Sales-mix (7) (8) % - (9) %) (10) variance |(11) Duma % - % ) (12) Kool % - %) = (13) The total sales-mix variance is Compute the total sales-quantity variance. (Calculate all variances in terms of contribution margin4.) Show results for each product in your computations. Let's first determine the formula for the sales-quantity variance, then calculate the variance for each type of sunglasses and in total for 2020. Label each variance as favorable (F) or unfavorable (U). (Enter percentages as a whole number. Enter all variances as positive numbers. Abbreviation used: CM = contribution margin.) Actual (14) (15) Sales-quantity Budgeted (17) (16) ) sales-mix % x CM per unit = variance |(18) Duma ( % x (19) Kool % x (20) The total sales-quantity variance is 1: Data Table 1: Data Table Budget for 2020 Selling Variable Cost Selling Price per Unit Units Sold Price $ 21 S 10 97,990 $ 22 S 23 S 16 141,010 S 28 Product Duma Kool Actual for 2020 Variable Cost Units Sold S 14 104,340 S 18 117,660 per Unit
