Question
Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor
Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow:
Flavor Budgeted Data Actual Operating Results
Gallons Selling Price per Gallon Variable Costs per Gallon Gallons Selling Price per Gallon Variable Costs per Gallon
Vanilla 354,000 $2.20 $1.50 294,000 $2.05 $1.40
Chocolate 442,500 3.40 2.50 412,500 3.25 2.40
Strawberry 295,000 2.75 1.65 425,000 2.95 1.70
Anchovy 88,500 4.40 2.90 208,500 4.90 3.10
Required:
1. Compute these variances for the individual flavors and total quantity sold.(Use the Contribution Margin in your calculations and do not round intermediate calculations.)
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