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Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and

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Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and sells three (3) products, EB, PQ and DR. During July 2019 the following budgeted and actual results were presented to you the management accountant for analysis: Budgeted Results Product Total Sales $ Volume/units Price $ Contribution Total margin per contribution unit $ margin $ EB 3,000,000 1,000 3,000 800 800,000 PQ 8,000,000 2,000 4,000 900 1,800,000 DR 2,000,000 1,000 2,000 700 700,000 Actual Results Product Total Sales S Volume/units Price $ Contribution Total margin per contribution unit $ margin $ EB 2,755,000 950 2,900 820 779,000 8,580,000 2,200 3,900 850 1,870,000 DR 2,231,000 970 2,300 720 698,400 PO Required: (a) Sales margin price variance. (5 marks) (b) Sales margin mixture variance. (5 marks) (c) Sales margin volume variance. (4 marks) (d) Sales margin quantity variance. (3 marks) (e) Why is it easier to control costs in a company than sales revenue? (4 marks) (f) As the management accountant list four (4) measures that you would adopt to have some degree of control over sales revenue. (4 marks)

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