Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET).
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
Budgeted | Operating Results | |||||||||||
MT | ET | MT | ET | |||||||||
Price per pound | $ | 40 | $ | 60 | $ | 50 | $ | 56 | ||||
Variable cost per pound | 20 | 36 | 24 | 40 | ||||||||
Sales (in pounds) | 4,800 | 4,800 | 4,246 | 5,404 | ||||||||
The total market was estimated to be 96,000 pounds at the time of budget. The actual total market for the year is 99,000 pounds.
What is the firm's total sales quantity variance? (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started