please help asap!!!!!

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	BudgetedMild	Actual Strong	Actual Mild
Price per kg	$2.00	$3.00	$2.50	$2.50
Variable cost /kg	1.00	1.50	1.00	2.00
Cont. margin	$1.00	$1.50	$1.50	$0.50
Sales (in kg)	2,000	1,500	1,700	1,800

Budgeted fixed costs are $1,750. Actual fixed costs are $2,000.

What is the STP total

salesmix

variance for contribution margin?

A.

$150 favourable

B.

$150 unfavourable

C.

$450 favourable

D.

$0

E.

$300 favourable

2.

Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream. The vendor covers all shipping costs. Office Supply House is not required to inspect the shipment upon entry. Office Supply House earns 20% on its cash investments. The purchase order lead time is two weeks. The following cost data are available:

Relevant ordering costs per purchase order	$53.75
Relevant insurance, materials handling, breakage, and so on, per year	$4.25

What are the total relevant inventory costs at the economic order quantity?

A.

$4,975.86

B.

$3,948.50

C.

$6,238.62

D.

$4,862.84

E.

$3,913.65

3.

Answer the following question(s) using the information below:

Elmo's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual product profitability figures. Information pertaining to three bundled products and the

standalone

prices is as follows:

	StandAlone Selling Price	Cost		Package	Packaged Price
Reading Fun	$50	$7.20		1. Reading Fun & Math Fun	$88
Math Fun	$60	$8.00		2. Reading Fun & Analysis	$112
Analysis	$90	$10.00		3. All three	$152

Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.

Using the

standalone

method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)?

A.

$38

B.

$44

C.

$40

D.

$22

E.

$50

4.

If Ferry Company has a safety stock of 160 units and the average daily demand is 20 units, how many days can be covered if the shipment from the supplier is delayed by 12 days?

A.

8.0 days

B.

12.0 days

C.

6.7 days

D.

10.0 days

E.

13.33 days