Bullers Consumer Products recently acquired a new apple cider business (ACB). The first year results for ACB have now become available and some preliminary results are provided in Exhibits 1 and 2 below.

Bullets Apple Cider Business Unit Flexible Budget Year Ended 31December 2022 sales revenue $'000 variable costs $'000 contribution margin $'000 fixed operating costs $'000 operating profit S'aoo Product breakdown semi-sweet cider: safes volume litres selling price $/litr* variable costs $/litre contribution margin S/litre dry cider: safes votume litres selling price $/litre variable co$t$ $/ litre contribution margin $/ | itre both riders combined: safes volume litres selling price S/litre variable costs $/litre contribution margin S/litre Australian Premium Apple Cider Market Size Year Ended 31 December 2020 Year Ended 31December 2021 Year Ended 31December 2022 Flexible Plan Budget Actual 2r010 2.037 2.01 (1,655) 11.674] (1,671) 355 363 347 (141] (141) (1 ^ 7) 214 222 210 156,000 240,000 240,000 3.671 3.671 3,545 (3.120) (3.12D) (3.QB9) 0.551 0.551 0.456 225,000 243,000 243,000 4.757 4.757 4.305 (3.B06) (3-806). (3-825) 0.951 0.951 Q.93Q 481,000 483,000 483,000 4.179 4.217 4.179 (3.441) (3.465) (3.459) 0.73S 0.752 0.720 Pirnt litres 2,000,000 2,500,000 3,000.000 Actual litres 2,515.000 2,701,200 2,092,000 Australian Premium Apple Cider Market Sine Year Ended 31December 2020 Year Ended 31December 2021 Year Ended 31December 2022 Bullers ACE Unit Market Share Year Ended 31December 2020 Year Fnded 31December 2021 Exhibit 2: Boilers Apple Cider Business Profit Variance Analysis Walk Year ended 31December 2022 Planned operating profit market size variance market share variance product mix variance rounding error (if any) volume variance price variance variable cost variance Plan Actual litres litres 2,000,000 zsmjm 2,500,000' 2,781,200 3,000,000 2,892,000 Actual 16-0% 17.5% S'000 S'000 (13) 14 7 (19} 3 8 S'OQO 214 rounding error (if any) volume variance 8 price variance (19) variable cost variance 3 Fixed operating cost variance 4 rounding error [if any) price/cost variance (12) Total variance (4) 1 rounding error (if any) Actual operating profit 210

Answer Tue or False to the following statement:

1.Excluding any variance(s) outside of managerial control and responsibility,ACB's total volume variance would be favourable

O True O False

2.The positive product mix variance suggests more sales of dry cider relative to semisweet cider than planned. O True O Faise

3.The product mix variance may be due in part toa reduction in the average variable cost per litre for both ciders combined. O True O False

4.The market share variance demonstrates ACB has improved its market share from last year. O True O False

5.The market (size) for Apple Cider is in decline. O True O False

6.The total volume variance of $8 000 represents the profits gained by ACB taking advantage of market growth and outperforming the competitors. O True O False

Exhibit 1 Bullers Apple Cider Business Unit Flexible Budget Year Ended 31 December 2022 sales revenue variable costs contribution margin fixed operating costs operating profit $'000 S'000 $'000 $000 $ 000 Plan 2,010 (1,655) 355 (141) 214 Flexible Budget 2,037 (1,674) 363 (141) 222 Actual 2.018 (1,671) 347 (137) 210 litres sitre s/litre SAltre 256,000 3671 (3.120) 0.551 240,000 3.671 3.120) 0.551 240,000 3.545 (3.089) 0.456 Product breakdown semi-sweet cider: sales volume selling price variable costs contribution margin dry cider: sales volume selling price variable costs contribution margin both ciders combined: sales volume Union Titres $/litre Stre $filtre 225.000 4.757 13.806) 0.951 243,000 4.757 (3.806) 0.951 243,000 4 80S (3.825) 0.980 Vitres 481.000 483,000 483,000 17 Stre $/litre (3.806) 0.951 (3.806) 0.951 13.823 0.980 variable costs contribution margin both clders combined: sales volume Hierdie litres 481,000 483.000 483,000 1217 both widers combined sales volume selling price variable costs contribution margin litres $/litre $/litre $/litre 481,000 4.179 (3.441) 0.738 483,000 4.217 (3.465) 0.752 483.000 4.179 (3.459) 0.720 Australian Premium Apple Cider Market Site Plon Intres 2,000,000 2,500,000 3,000,000 Actual litres 2,516,000 2,781,200 2,892,000 Year Ended 31 December 2020 Year Ended 31 December 2021 Year Ended 31 December 2022 Bullers ACB Unit Market Share Year Ended 31 December 2020 Year Ended 31 December 2021 Actual 16.0% 17.5% Exhibit 2: Bullers Apple Cider Business his all QUES QBCIX Q40 Q5 Q7TC31CX006 B 0060 X Ce + File C:/Users/Iqra%20Shakeel/3D%20Objects/QQ%206%20C.pdf YouTube XMaps ICMA PAKISTAN Bookkeeping Outi. Master Budget Intr... Glocal Ecademy - + Draw Erase Exhibit 2: Bullers Apple Cider Business Profit Variance Analysis Walk Year ended 31 December 2022 $'000 $'000 $'000 214 (13) 14 Planned operating profit market size variance market share variance product mix variance rounding error (if any) volume variance price variance 7 8 1191 (19) 3 price variance variable cost variance Fixed operating cost variance rounding error (if any) price/cost variance 4 (12) w Desktop Ng QUEST HEI Q30 X Q50 X Q7 TO HT Q116 X 006 0060 File C/Users/Iqra%20Shakeel/3D%20Objects/QQ%206%20C.pdf Maps ICMA PAKISTAN Bookkeeping Outli... Master Budget Intr... Glocal Ecademy Tube Draw Erase 2000 000 214 (13) 14 Planned operating profit market size variance market share variance product mix variance rounding error (if any) volume variance arice varian 7 8 Hg1 (19) 3 4 price variance variable cost variance Fixed operating cost variance rounding error (if any) price/cost variance Total variance rounding error (if any) Actual operating profit (12) (4) 210 Answer True or False to the following statement: Desktop Exhibit 1 Bullers Apple Cider Business Unit Flexible Budget Year Ended 31 December 2022 sales revenue variable costs contribution margin fixed operating costs operating profit $'000 S'000 $'000 $000 $ 000 Plan 2,010 (1,655) 355 (141) 214 Flexible Budget 2,037 (1,674) 363 (141) 222 Actual 2.018 (1,671) 347 (137) 210 litres sitre s/litre SAltre 256,000 3671 (3.120) 0.551 240,000 3.671 3.120) 0.551 240,000 3.545 (3.089) 0.456 Product breakdown semi-sweet cider: sales volume selling price variable costs contribution margin dry cider: sales volume selling price variable costs contribution margin both ciders combined: sales volume Union Titres $/litre Stre $filtre 225.000 4.757 13.806) 0.951 243,000 4.757 (3.806) 0.951 243,000 4 80S (3.825) 0.980 Vitres 481.000 483,000 483,000 17 Stre $/litre (3.806) 0.951 (3.806) 0.951 13.823 0.980 variable costs contribution margin both clders combined: sales volume Hierdie litres 481,000 483.000 483,000 1217 both widers combined sales volume selling price variable costs contribution margin litres $/litre $/litre $/litre 481,000 4.179 (3.441) 0.738 483,000 4.217 (3.465) 0.752 483.000 4.179 (3.459) 0.720 Australian Premium Apple Cider Market Site Plon Intres 2,000,000 2,500,000 3,000,000 Actual litres 2,516,000 2,781,200 2,892,000 Year Ended 31 December 2020 Year Ended 31 December 2021 Year Ended 31 December 2022 Bullers ACB Unit Market Share Year Ended 31 December 2020 Year Ended 31 December 2021 Actual 16.0% 17.5% Exhibit 2: Bullers Apple Cider Business his all QUES QBCIX Q40 Q5 Q7TC31CX006 B 0060 X Ce + File C:/Users/Iqra%20Shakeel/3D%20Objects/QQ%206%20C.pdf YouTube XMaps ICMA PAKISTAN Bookkeeping Outi. Master Budget Intr... Glocal Ecademy - + Draw Erase Exhibit 2: Bullers Apple Cider Business Profit Variance Analysis Walk Year ended 31 December 2022 $'000 $'000 $'000 214 (13) 14 Planned operating profit market size variance market share variance product mix variance rounding error (if any) volume variance price variance 7 8 1191 (19) 3 price variance variable cost variance Fixed operating cost variance rounding error (if any) price/cost variance 4 (12) w Desktop Ng QUEST HEI Q30 X Q50 X Q7 TO HT Q116 X 006 0060 File C/Users/Iqra%20Shakeel/3D%20Objects/QQ%206%20C.pdf Maps ICMA PAKISTAN Bookkeeping Outli... Master Budget Intr... Glocal Ecademy Tube Draw Erase 2000 000 214 (13) 14 Planned operating profit market size variance market share variance product mix variance rounding error (if any) volume variance arice varian 7 8 Hg1 (19) 3 4 price variance variable cost variance Fixed operating cost variance rounding error (if any) price/cost variance Total variance rounding error (if any) Actual operating profit (12) (4) 210 Answer True or False to the following statement: Desktop