Problem 11-20 Total Budget Year 1 55,000 Actual Year 1 55,000 Sales Variance Variance Total $ Volume Price Mix Sum New club volume New club price New club VMC Budget Units Price 55,000 $ 825 65,000 $ 1,100 112,000 $ 410 232,000 $701.70 $ $ 825 395 Actual Price Sales $M $ 825 $45,375 $1,000 $60,000 $ 420 $50,400 $662.87 155,775 New clubs Premium club Disc. Clubs Total $ $ 825 400 Sales $M $45,375 $71,500 $45,920 162,795 Units 55,000 60,000 120,000 235,000 65,000 60,000 VMC Variance Prem club Volume Prem club price Prem club VMC $ 1,100 $ 650 $ 1,000 $ 665 Variance Total $ Units Volume Price Mix Sum Budget Units Var Cost VMC SM 55,000 $ 395 $21,725 65,000 $ 650 $42,250 112,000 $ 185 $20,720 232,000 $365.06 84,695 Actual Var Cost VMC SM $ 400 $22,000 $ 665 $39,900 $ 190 $22,800 $360.43 84,700 112,000 New clubs Premium club Disc. Clubs Total 120,000 Disc club volume Disc club price Disc club VMC $ $ 420 190 60,000 120,000 235,000 $ 185 Total Units 232,000 235,000 Volume Due To: Rate Mix Total Sales VMC Gross Profit Fixed Costs Depreciation EBIT Taxes NI $162,795,000 $ 84,695,000 $ 78,100,000 $ 24,200,000 $ 23,700,000 $ 30,200,000 $ 12,080,000 $ 18,120,000 % Sales $ per Unit 100.00% $ 701.70 52.03% $365.06 47.97% $336.64 14.87% $104.31 14.56% $102.16 18.55% $130.17 7.42% $ 52.07 11.13% $ 78.10 $ $ $ $ $ $ $ $ 155,775,000 84,700,000 71,075,000 24,500,000 23,500,000 23,075,000 9,230,000 13,845,000 % Sales $ per Unit 100.00% $662.87 54.37% $360.43 45.63% $302.45 15.73% $104.26 15.09% $100.00 14.81% $ 98.19 5.93% $ 39.28 8.89% $ 58.91 ($000's) Sales $ (7,020) VMC $ (5) Gross Profit $ (7,025) Fixed Costs $ (300) Depreciation $ 200 EBIT $ (7,125) Taxes $ 2,850 NI $ (4,275) 40% Problem 11-20 Total Budget Year 1 55,000 Actual Year 1 55,000 Sales Variance Variance Total $ Volume Price Mix Sum New club volume New club price New club VMC Budget Units Price 55,000 $ 825 65,000 $ 1,100 112,000 $ 410 232,000 $701.70 $ $ 825 395 Actual Price Sales $M $ 825 $45,375 $1,000 $60,000 $ 420 $50,400 $662.87 155,775 New clubs Premium club Disc. Clubs Total $ $ 825 400 Sales $M $45,375 $71,500 $45,920 162,795 Units 55,000 60,000 120,000 235,000 65,000 60,000 VMC Variance Prem club Volume Prem club price Prem club VMC $ 1,100 $ 650 $ 1,000 $ 665 Variance Total $ Units Volume Price Mix Sum Budget Units Var Cost VMC SM 55,000 $ 395 $21,725 65,000 $ 650 $42,250 112,000 $ 185 $20,720 232,000 $365.06 84,695 Actual Var Cost VMC SM $ 400 $22,000 $ 665 $39,900 $ 190 $22,800 $360.43 84,700 112,000 New clubs Premium club Disc. Clubs Total 120,000 Disc club volume Disc club price Disc club VMC $ $ 420 190 60,000 120,000 235,000 $ 185 Total Units 232,000 235,000 Volume Due To: Rate Mix Total Sales VMC Gross Profit Fixed Costs Depreciation EBIT Taxes NI $162,795,000 $ 84,695,000 $ 78,100,000 $ 24,200,000 $ 23,700,000 $ 30,200,000 $ 12,080,000 $ 18,120,000 % Sales $ per Unit 100.00% $ 701.70 52.03% $365.06 47.97% $336.64 14.87% $104.31 14.56% $102.16 18.55% $130.17 7.42% $ 52.07 11.13% $ 78.10 $ $ $ $ $ $ $ $ 155,775,000 84,700,000 71,075,000 24,500,000 23,500,000 23,075,000 9,230,000 13,845,000 % Sales $ per Unit 100.00% $662.87 54.37% $360.43 45.63% $302.45 15.73% $104.26 15.09% $100.00 14.81% $ 98.19 5.93% $ 39.28 8.89% $ 58.91 ($000's) Sales $ (7,020) VMC $ (5) Gross Profit $ (7,025) Fixed Costs $ (300) Depreciation $ 200 EBIT $ (7,125) Taxes $ 2,850 NI $ (4,275) 40%
