Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One multiple question attached Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of teas are imported, Strong and Mild, and
One multiple question attached
Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of teas are imported, Strong 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 May: Budgeted Strong Mild Actual Strong Mild $2.00 $3.00 $2.50 $2.50 1.00 1.50 1.00 2.00 Contribution margin $1.00 $1.50 $1.50 $0.50 Sales (in kg) 2,000 1,500 1,700 1,800 Price per kg Variable cost/kg Budgeted fixed costs are $1,750. Actual fixed costs are $2,000. What is the STP total sales-volume variance for May? $300 favourable $300 unfavourable $150 favourable $150 unfavourableStep by Step Solution
There are 3 Steps involved in it
Step: 1
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