The Burnt-Toast Corporation manufactures two types of toasters The Super Model and the Economy model. The Super model can toast up to 8 slices of bread and can also toast bagels, muffins, and other odd-sized items. The Economy model can toast up to 4 slices and has no special features. Budgeted and actual operating data for the year 2022 were as follows:

Actual sales mix for the Super model was 30%, and budgeted sales mix for the Super model was 25%. Actual sales mix for the Economy model was 70%, and budgeted sales mix for the Economy model was 75%.

Prior to the beginning of the year, a consulting firm estimated the total volume of toasters that would be sold in Western Canada to be 200,000 units, but actual industry volume was 152,000 units sold in Western Canada in 2022. The company wants to analyze its sales-volume, sales-mix, sales quantity, market share and market size variances.

REQUIRED:

Choose to solve this question using either the Template Chart method (Method 1) in the provided Excel spreadsheet and answer the multichoice questions. Attach the final spreadsheet with all answers to the exam (you only need to attach the final spreadsheet to one of the questions in the exam that allows you to attach a file - such as this question).

OR... choose the Formula Method (Method 2) and show your calculations in the space provided below and then answer the multichoice questions. If you are using the Formula Method, make sure to identify the multi-choice question number when displaying the work. If there is no calculation for a question, explain why.

Do not do both methods.

(15 marks - 10 marks for showing calculations and work and 5 marks for correct answers to multichoice questions)

Question 7 options:

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Question 8 (1 point)

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What is the total sales-mix variance for Burnt-Toast Corporation in terms of the contribution margin? (1 mark)

Question 8 options:

	$23,750 U
	None of the other answers
	$142,500 F
	$239,200 U
	$23,750 F
	$239,200 F
	$142,500 U

Question 9 (1 point)

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What is the total sales-volume variance for Burnt-Toast Corporation in terms of the contribution margin? (1 mark)

Question 9 options:

	$7,500 F
	$55,000 U
	$55,000 F
	$7,500 U
	$239,200 U
	None of the other answers
	$239,200 F

Question 10 (1 point)

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What is the market-share variance for Burnt-Toast Corporation in terms of the contribution margin? (1 mark)

Question 10 options:

	$1,152,000 U
	$1,152,000 F
	$70,000 F
	$70,000 U
	None of the other answers
	$332,500 U
	$332,500 F

Question 11 (1 point)

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What is the market-size variance for Burnt-Toast Corporation in terms of the contribution margin? (1 mark)

Question 11 options:

	$87,500 U
	$420,000 F
	$420,000 U
	$1,260,000 U
	$87,500 F
	$1,260,000 F

Question 12 (1 point)

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What is the total sales-quantity variance for Burnt-Toast Corporation in terms of the contribution margin? (1 mark)

Question 12 options:

	$87,500 F
	$16,250 U
	None of the other answers
	$55,000 F
	$55,000 U
	$87,500 U
	$16,250 F