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Please help with each of the requirements! Thanks in advance! Seattle Infonautics, Inc., produces handheld Windows CE-compatible organizers. Seattle Infonautics markets three different handheld models:
Please help with each of the requirements! Thanks in advance!
Seattle Infonautics, Inc., produces handheld Windows CE-compatible organizers. Seattle Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive on the go, PalmCE is a consumer-oriented version, and PalmKid is a stripped-down version for the young adult market. You are Seattle Infonautics' senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company's third quarter of 2017 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Read the requirements. Requirement 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017. Begin by computing the actual contribution margins (CM), then compute the budgeted contribution margins in dollars for each product and in total for the third quarter of 2017. Actual CM x Palm Pro - Data Table Data Table PalmCE PalmKid Total Actual Operating Data, Third Quarter 2017 Selling Variable Cost Contribution Price Margin per Unit PalmPro $ 353 $ 179 $ 174 Sales Volume in Units per Unit Cost per 10,120 Budgeted Operating Data, Third Quarter 2017 Variable Sales Contribution Volume Selling Price Unit Margin per Unit in Units PalmPro $ 380 $ 180 $ 200 5,550 PalmCE 276 93 183 44,400 PalmKid 144 72 72 61,050 PalmCE 288 94 194 32,200 49,680 PalmKid 112 73 39 92,000 Total 111,000 Total Print Done Print Done i - X Requirements 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017. 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017. 3. Calculate total sales volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (Calculate all variances in terms of contribution margins.) 4. Given that your CEO gets very angry if actual results differ from budget, you want to be well prepared for this meeting. In order to prepare, complete the summary comparing actual results to budgeted amounts. Print DoneStep by Step Solution
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