Required:

1. Calculate the sales mix variance and the sales quantity variance for each of the product lines and in total for ABC Co. (Calculate all variances in terms of contribution margins.)

2.Calculate market share and market size variances for the ABC Coas a whole. (Calculate all variances in terms of contribution margins.)

3. What is the sales volume variance for ABC Co. for last year?

4. Comment on the overall ABC Co. performance over the year and what may have caused the ariances calculated in required 1 - 2 . What recommendation ( s) can you make for ABC? Be specific .

* Cut Font Name Font Size TabStop p Wrap Text Mil . te s Copy B i D AUS Overline Merge Cell ICK HERE TO SAVE YOUR WORK A B D G H 2 Revenue Variance Analysis (18 Marks) 3 4 ABC Co. manufactures widgets and has the following operating information for the past year: 5 6 Actual Data Actual Total Contribution Margin 7 Product Actual Unit Line 8 Sales 9 2,640 10 B 2,160 11 4.800 12 13 Budgeted Data Actual Unit Contribution Margin $90 $65 $237,600 $140,400 $378,000 Budgeted Total Contribution Margin Product Budgeted Unit Line Sales 14 Budgeted Unit Contribution Margin $95 $50 15 A 16 B 2,000 3,000 5,000 $190,000 $150.000 $340.000 17 18 19 Industry volume was estimated at 50,000 Widgets. Actual industry sales were 53,000 Widgets. 20 21 Required: (1 to 4) 22 1 Calculate the sales mix variance and the sales quantity variance for each of the nroduct Question Answer New 14