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I need to find the CM Sales Mix Variance and CM Sales quantity variance for this, but have no idea where to start.. The answers
I need to find the CM Sales Mix Variance and CM Sales quantity variance for this, but have no idea where to start..
The answers are CM Sales Mix Variance: 9150F and CM Sales Quantity Variance:156,750F
Paris Perfumery sells two perfumes, L'Amor and Plaisir. The expected sales mix is one bottle of LAmour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir Total Sales Variable costs Contribution Margin (10,000 ynit $600,000 (50,000 units) $400,000 $1,000,000 230,000 430.000 $400.000 $170,000 $ 570 During the period there was an economic downturn. Sales of L Amour dropped off, so Paris reduced its price Actual sales were as follows Total $625,500 318,000 Plaisir Sales Variable costs Contribution Margin L:Amoup (7,500 @ $45) $337,500 165.000 $172,500 (36,000 @ $8) $288,000 153.000 S135.000 $307500Step by Step Solution
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