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Majani Chai has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Premium and Mild, and sold to retail outlets. The monthly
Majani Chai has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Premium and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the month of July:
Budgeted Premium | BudgetedMild | Actual Premium | Actual Mild | |
Price per kg | $2.00 | $3.00 | $2.50 | $2.50 |
Variable cost /kg | 1.00 | 1.50 | 1.00 | 2.00 |
Cont. margin | $1.00 | $1.50 | $1.50 | $0.50 |
Sales (in kg) | 2,000 | 1,500 | 1,700 | 1,800 |
Budgeted fixed costs are $1,750. Actual fixed costs are $2,000. What is the Majani Chai's total sales-mix variance for contribution margin?
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