3 The types of ihiomauo a (Hint: You may need to review Chapter 8.) 11.43 LO11.11 (appendix) Analysing sales performance using variances: manufacturer Quill Pen Company manufactures two lines of pens: Super and Executive. Budgeted and actual contribution margin statements follow Quill Pen Company Budget and Actual Contribution Statements for the year ended 31 December (in 'ooos) Actual Executive 130 $1235 Budget SuperExecutive Total Total 260 $2015 450 750 1200 390975 1365 $ 260 650 Super 130 $780 100 Unit sales Sales revenue Variable expenses Contribution margin Fixed expenses: Manufacturing Marketing Administration 150 $900 $1000 $1900 $390 $450 250 $ 700 $200 153 95 $448 $252 $190 140 90 $420 $230 Total fixed expenses Profit before taxes Required: 1 The budgeted total volume of 250 000 units was based on the company achieving a market share of 2 Calculate the variance of actual contribution margin from budgeted contribution margin attributable 3 Calculate the variance of actual contribution margin from budgeted contribution margin attributable 20 per cent. Actual industry volume reached 1 290 o00 units. Calculate the portion of Quill's increased volume resulting from improved market share. to the sales price. Indicate whether the variance is favourable or unfavourable. (Hint: Add the sales price variances calculated for each product line.) to unit variable cost changes. For each product, indicate whether the variance is favourable or unfavourable Provide a reconciliation that explains the source of differences between actual contribution margin and budgeted contribution margin. (Hint: List variances that explain the difference.) 4