Forever Corp. buys and sells two types of sunglasses in New York: Duma and Kool Budgeted and actual results for 2017 are as follows. Click the icon to view the budgeted and actual results.) Requirement Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantly variance Calculate all variances in terms of contribution margie) Show results for each product in your computations CM per Sales Begin by calculating the budgeted contribution margin for each product and in total (Enter the sales mix as a whole number, XX.) Selling Variable Cost Units Price per unit Sold Duma Kool unit Mix Tot Product Duma Budget for 2017 Actual for 2017 Selling Variable Cost Selling Variable Cost Price per Unit Units Sold Price per Unit Units Sold $ 26 $ 13 95,530 $ 15 $ 14 104,340 $ 27 $ 17 137,470 $ 30 $ 13 117,660 Kool Now calculate the actual contribution margin for each product and in total. (Enter the sales mix as a whole number, X%.) Sales Selling Price Variable Cost per unit CM per unit Units Sold CM Mix % Duma Kool Total % Compute the total sales-volume variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Determine the formula for sales-volume variance, then compute the sales-volume variance for each type of sunglasses and in total for Forever in 2017. Label each variance as favorable (F) or unfavorable (U). (Enter all variances as positive numbers. Abbreviation used: qty = quantity.) Sales- volume = variance Duma Kool = The total sales-volume variance is Now compute the total sales-mix variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Now determine the formula for the sales-mix variance, then calculate the variance for each type of sunglasses and in total for 2017. Label each variance as favorable (F) or unfavorable (U). (Enter any percentages as a whole number. Enter all variances as positive numbers. Abbreviations used: CM = contribution margin; VC = variable cost.) Actual Actual Budgeted Sales- mix variance Budgeted %) * %) * %) x % Duma Kool % - The total sales-mix variance is Compute the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Let's first determine the formula for the sales-quantity variance, then calculate the variance for each type of sunglasses and in total for 2017. Label each variance as favorable (F) or unfavorable (U). (Enter percentages as a whole number. Enter all variances as positive numbers. Abbreviation used: CM = contribution margin.) Sales- Actual Budgeted quantity Compute the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Let's first determine the formula for the sales-quantity variance, then calculate the variance for each type of sunglasses and in total for 2017. Label each variance as favorable (F) or unfavorable (U). (Enter percentages as a whole number. Enter all variances as positive numbers. Abbreviation used: CM = contribution margin.) Sales- Actual Budgeted quantity sales-mix % CM per unit = variance Duma % * Kool % x = The total sales-quantity variance is
