Musumundo case study:

3. According to Exhibit 7a, from January to June 2004 Musimundo generated AR$449,000 more gross margin before variable costs than it budgeted.

a. How much of the change in gross margin was due to :

i. Change in Sales?

ii. Change in unit margins?

iii. Changes in product mix?

b. How do you interpret this information? What questions should Quintana ask in the Board of Directors meeting? When you consider the results of this analysis and the other information in the managerial report, do you think Musimundo is in good shape?