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Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows: Budget Unit
Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows: Budget Unit Sales Unit Margin Product 1 3200 10.00 Product 2 1700 13.00 Product 3 5100 9.00 10,000 10.00 Actual Product 1 2850 10.20 Product 2 2500 12.58 Product 3 4250 8.80 9600 10.20 Required: Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated individually
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