Question
Pet Toys, Inc., expected to sell one plush toy for each two chew toys sold. Planned sales and variable costs for last year were as
Pet Toys, Inc., expected to sell one plush toy for each two chew toys sold. Planned sales and variable costs for last year were as follows: During the year, a competitor came out with a similar plush toy at a lower price. Management reacted by dropping its selling price for plush toys, but the results were disappointing. Actual sales were as follows: REQUIRED A. Determine the revenue budget variance, the sales price variance, and the revenue sales quantity variance. B. Determine the contribution margin budget variance, the contribution margin variance, and the contribution margin sales volume variance. C. Determine the contribution margin sales mix variance and the contribution margin sales quantity variance.
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