Score: 0.17 of 1 pt 4 of 5 (4 complete) HW Score: 56.89%, 2.84 of 5 pts 2x) Exercise 16-22 (alt1) Sales mix and contribution margin Ericson Inc. prepared the budget for 2017 assuming a 30% market share based on total sales in the Midwest reg (Click the icon to view the budgeted and actual results.) (a (Click the icon to view the sales variances.) Budget for 2017 Contribution Margin Sales Volume Sales Mix Contribution Budgeted and actual results - per Unit in Units (Based on Units) 60 % Kostor $ 4.75 $ 144,000 96,000 Margin 684,000 696,000 Limba $ 7.25 40 % 240,000 100 % $ Total 1,380,000 The market was estimated to reach sales of 0.80 million cartons in the region. However, actual total sales volume in the Midwestern region was 0.912 million cartons. Budgeted and actual results for 2017 are as follows: Actual for 2017 Budget for 2017 Actual for 2017 Contribution Margin Sales Volume Sales Mix Contribution Variable Cost Cartons Variable Cost Cartons Selling Price Selling Price per Unit in Units (Based on Units) Margin Product per Carton Sold per Carton Sold Kostor $ 4.55 65 % $ Kostor $ 13.00 $ 8.25 $ 13.60 $ 9.05 148,200 144,000 96,000 148,200 79,800 674,310 674,310 Limba $ 8.45 35 % Limba $ 17.00 $ 9.75 $ 18.20 $ 9.75 79,800 228.000 100 % $ Total 1,348,620 Print Done Print Done 3 parts Clear A UUUUIOUTONUL Sales variances Sales-volume x Actual units sold Static budget units sold = variance Budgeted CM per unit 4.75 Kostor $ x( 148,200 144,000 ) = $ 19,950 F Limba $ 7.25 x 79,800 96,000 ) = $ 117,450 U The total sales-volume variance is $ 97,500 U Actual Budgeted Budgeted Sales-quantity Budgeted CM per unit qty all units sold qty all units sold ) x sales-mix % x variance Kostor ( 228,000 240,000 x 60 % x $ 4.75 U = $ 34,200 $ 34,800 Limba ( 228,000 240,000 ) x 40 % x $ 7.25 U The total sales-quantity variance is $ 69,000 U Actual Actual Sales-mix X ( sales-mix % - Budgeted sales-mix % ) x 60 %)$ Budgeted CM per unit 4.75 qty all units sold 228,000 = variance Kostor X ( 65 % - = $ 54,150 F Print Done Score: 0.17 of 1 pt 4 of 5 (4 complete) HW Score: 56.89%, 2.84 of 5 pts 2x) Exercise 16-22 (alt1) Sales mix and contribution margin Ericson Inc. prepared the budget for 2017 assuming a 30% market share based on total sales in the Midwest reg (Click the icon to view the budgeted and actual results.) (a (Click the icon to view the sales variances.) Budget for 2017 Contribution Margin Sales Volume Sales Mix Contribution Budgeted and actual results - per Unit in Units (Based on Units) 60 % Kostor $ 4.75 $ 144,000 96,000 Margin 684,000 696,000 Limba $ 7.25 40 % 240,000 100 % $ Total 1,380,000 The market was estimated to reach sales of 0.80 million cartons in the region. However, actual total sales volume in the Midwestern region was 0.912 million cartons. Budgeted and actual results for 2017 are as follows: Actual for 2017 Budget for 2017 Actual for 2017 Contribution Margin Sales Volume Sales Mix Contribution Variable Cost Cartons Variable Cost Cartons Selling Price Selling Price per Unit in Units (Based on Units) Margin Product per Carton Sold per Carton Sold Kostor $ 4.55 65 % $ Kostor $ 13.00 $ 8.25 $ 13.60 $ 9.05 148,200 144,000 96,000 148,200 79,800 674,310 674,310 Limba $ 8.45 35 % Limba $ 17.00 $ 9.75 $ 18.20 $ 9.75 79,800 228.000 100 % $ Total 1,348,620 Print Done Print Done 3 parts Clear A UUUUIOUTONUL Sales variances Sales-volume x Actual units sold Static budget units sold = variance Budgeted CM per unit 4.75 Kostor $ x( 148,200 144,000 ) = $ 19,950 F Limba $ 7.25 x 79,800 96,000 ) = $ 117,450 U The total sales-volume variance is $ 97,500 U Actual Budgeted Budgeted Sales-quantity Budgeted CM per unit qty all units sold qty all units sold ) x sales-mix % x variance Kostor ( 228,000 240,000 x 60 % x $ 4.75 U = $ 34,200 $ 34,800 Limba ( 228,000 240,000 ) x 40 % x $ 7.25 U The total sales-quantity variance is $ 69,000 U Actual Actual Sales-mix X ( sales-mix % - Budgeted sales-mix % ) x 60 %)$ Budgeted CM per unit 4.75 qty all units sold 228,000 = variance Kostor X ( 65 % - = $ 54,150 F Print Done
