Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analysis of sales variances to develop strategies to improve its profit position is an ongoing exercise at CPL Ltd. The company produces and sells three

Analysis of sales variances to develop strategies to improve its profit position is an ongoing exercise at CPL Ltd. The company produces and sells three products, Date Prune, and Cashella. The following budgeted and actual results were extracted from the companys records for the month of January 2017:

Budgeted Results

Product

Total Sales $

Volume/units

Price $

Contribution margin per unit $

Total contribution margin $

Date

1,200,000

600

2,000

950

570,000

Prune

1,040,000

800

1,300

620

496,000

Cashella

600,000

600

1,000

650

390,000

2,840,000

2,000

1,456,000

Actual Results

Product

Total Sales $

Volume/units

Price $

Contribution margin per unit $

Total contribution margin $

Date

1,540,000

700

2,200

1,000

700,000

Prune

957,600

760

1,260

600

456,000

Cashella

614,400

640

960

540

345,600

3,112,000

2,100

1,501,600

Required:

  1. Sales margin price variance.
  2. Sales margin mixture variance.
  3. Sales margin volume variance.
  4. Sales margin quantity variance.

Total sales margin total variance.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

12th Global Edition

1292268859, 978-1292268859

More Books

Students also viewed these Finance questions

Question

In terms of speed, how does virtual memory compare with RAM?

Answered: 1 week ago