Answered step by step
Verified Expert Solution
Question
1 Approved Answer
John works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $103
John works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $103 and $209 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 750 pairs of clogs and 250 pairs of boots. The variable cost per pair was $50 for clogs and $77 for boots. At the end of the year, John evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. (a) Actual sales volume: clogs, 913; boots, 187. Actual selling price: clogs, $113 per pair; boots, $198 per pair. Actual per-unit variable costs for each product were the same as budgeted. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Total revenues Total variable costs $ $ Total contribution margin $ Master Budget $ $ $ Flexible Budget $ $ $ Actual
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To answer this question we will need to calculate the following Revenue The amount of money the comp...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