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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.

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