Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view

image text in transcribed

Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) Read the requirements Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance (Calculate all variances in terms of contribution margin.) Show results for each product in your computations, Begin by completing the following table to determine the budgeted contribution margin per unit, sales mix and contribution margin. (Enter all dollar values to the nearest cent and sales mix as whole percentages.) Budget for 2017 Contribution Margin per Unit Sales Volume in Units Sales Mix (Based on Units) Contribution Margin Kostor % Limba % Total % Data Table Requirements Budget for 2017 Actual for 2017 Selling Variable Cost Cartons Selling Variable Cost Cartons Product Price per Carton Sold Price per Carton Sold Kostor $15.00 S 10.50 147.000 S 15.45 S 11.15 151,200 Limba $ 16.00 S 63,000 S 17.30 S 8.45 37.800 Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. What inferences can you draw from the variances computed in requirement 1? 2. Print Dane Print Done

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

Step: 3

blur-text-image

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

Fraud Auditing And Forensic Accounting

Authors: Tommie W. Singleton, Aaron J. Singleton, G. Jack Bologna, Robert J. Lindquist

3rd Edition

0471785911, 978-0471785910

More Books

Students also viewed these Accounting questions