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Gevorg's Electronics manufactures TVs and DVDRs. During April, the following activities occurred: TVs DVDRs Budgeted units sold 19,404 72,996 Budgeted contribution margin per unit $40
Gevorg's Electronics manufactures TVs and DVDRs. During April, the following activities occurred:
TVs | DVDRs | |
Budgeted units sold | 19,404 | 72,996 |
Budgeted contribution margin per unit | $40 | $75 |
Actual units sold | 22,000 | 80,000 |
Actual contribution margin per unit | $45 | $76 |
Required:
Compute the following variances in terms of the contribution margin.
a. Determine the total sales-mix variance.
b. Determine the total sales-quantity variance.
c. Determine the total sales-volume variance.
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