Performance Report, June 2017 Actual Static Results Budget 447,000 Units (pounds) 460,000 Revenues $ 2,626,600 $ 1,651,400 2,592,600 1,564,500 Variable manufacturing costs $ Contribution margin 975,200 $ 1,028,100 Jeff Geller, the business manager for ice-cream products, is pleased that more pounds of ice cream ere sold than budgeted and that revenues were up. Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $52,900, which is just over 2% of the budgeted revenues of $2,592,600. Overall, Geller feels that the business is running fine. Requirements 1. Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its static-budget amount? 2. Break down each static-budget variance into a flexible-budget variance and a sales-volume variance. 3. Calculate the selling-price variance. 4. Assume the role of management accountant at Cascade. How would you present the results to Jeff Geller? Should he be more concerned? If so, why? Print Done le-COSI Valls Geller should sales-volume variance in contribution margin, a(n) selling-price variance, and a(n) concerned because the small static-budget variance in contribution margin is actually made up of a(n) variable manufacturing costs variance. Geller