Question
Blank Slate Inc. (BSI) Blank Slate Inc. (BSI) produces tablet computers. BSI markets three different handheld models. SlatePro is a souped-up version for the executive
Blank Slate Inc. (BSI) Blank Slate Inc. (BSI) produces tablet computers. BSI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped down version for the young adult market. You are BSIs senior vice-president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why results are different from the budget. Budgeted and actual operating data for the companys third quarter of 2020 are as follows: Budgeted Operating Data, Third Quarter 2020 Selling Price Variable Cost per Unit Contribution Margin per Unit Sales Volume in Units SlatePro $379 $182 $197 12,500 Slate 269 98 171 37,500 SlateLite 149 65 84 50,000 100,000 Actual Operating Data, Third Quarter 2020 Selling Price Variable Cost per Unit Contribution Margin per Unit Sales Volume in Units SlatePro $349 $178 $171 11,000 Slate 285 92 193 44,000 SlateLite 102 73 29 55,000 110,000 Required (Calculate all variances in terms of contribution margins.) 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2020. 2. Calculate total sales-price, sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2020. 3. Blank Slates senior vice-president of marketing prepared his budget at the beginning of the third quarter, assuming a 25% market share based on total sales. The total tablet market was estimated by Foolinstead Research to reach sales of 400,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. Calculate the market-share and market-size variances for BSI in the third quarter of 2020.
please help with question 2 and 3
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