PWC Preliminary Actuals
For the Year Ending December 31, 20x1
(In Thousands of Dollars)
Lighting Fixtures
		Upscale		Mid-Range		Electronic Timing Devices		Total
Sales		$ 2,160		$140		$1,200		$ 3,500
Variable expenses:
Cost of goods sold		(1,080)		(80)		(480)		(1,640)
Selling and administrative		(260)		(11)		(96)		(367)
Contribution margin		$ 820		$ 49		$ 624		$ 1,493
Fixed overhead expenses		140		14		80		234
Segment margin		$ 680		$ 35		$ 544		$ 1,259

The controller of the Lighting Fixtures Division, anticipating a similar bonus plan for 20x2, is contemplating deferring some revenues to the next year on the pretext that the sales are not yet final and accruing in the current year expenditures that will be applicable to the first quarter of 20x2. The corporation would meet its annual plan, and the division would exceed the 10 percent incremental bonus plateau in 20x1 despite the deferred revenues and accrued expenses contemplated.

Required:

1. Select one benefits that an organization realizes from segment reporting. Evaluate segment reporting on a variable-costing basis versus an absorption-costing basis.

It highlights the profitability of each segmentThe contribution each segment makes toward profit is not easily seenIt enables managers to increase profits by manipulating inventory production levels

2. Calculate the contribution margin, contribution margin volume, and sales mix variances. Enter your answers in dollars, rather than in thousands of dollars For example, enter "750,000" rather than "750". If required, round calculations to the nearest cent.

Contribution margin variance	$fill in the blank 2	FavorableUnfavorableFavorable
Contribution margin volume variance	$fill in the blank 4	FavorableUnfavorableUnfavorable
Sales mix variance	$fill in the blank 6	FavorableUnfavorableFavorable