Question
Second Inc. is a food stand located on a busy corner in the local business district. On average it sells three cheeseburgers and one fishwich
Second Inc. is a food stand located on a busy corner in the local business district. On average it sells three cheeseburgers and one fishwich for every four hamburgers sold. The following data were culled from its operation for 2016:
| Total operating income variance | ||
| Hamburger | $18,000 | Unfavorable |
| Cheeseburger | $50,000 | Favorable |
| Fishwich | $10,000 | Unfavorable |
| Sales quantity variance | ||
| Hamburger | $14.000 | Favorable |
| Cheeseburger | $15,000 | Favorable |
| Fishwich | ||
| Sales mix variance | ||
| Hamburger | $2,240 | Unfavorable |
| Cheeseburger | $4,800 | Unfavorable |
| Fishwich | $1,600 | Favorable |
| Fixed costs variances | $0 | |
| Market share variance | $96,000 | Unfavorable |
| Market size variance | $126,000 | Favorable |
| Change in market share | 4% | |
| Fixed cost flexible budget variance | $0 |
The estimated total volume for the food stands in the region was 2,500,000 units. Consistent good weather pushed the total volume for the year to 4,000,000.
Determine the following:
1. Budgeted weighted-average contribution margin
2. Budgeted and actual market shares
3. Budget and actual total units sold
4. Sales quantity variance for fishwich
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Project Management Accounting Budgeting Tracking And Reporting Costs And Profitability
Authors: Kevin R. Callahan, Gary S. Stetz, Lynn M. Brooks
1st Edition
0470044691, 978-0470044698
