The Endo Corporation (EC) sells two brands of wine glasses: Plain and Chic. EC provides the following information for sales in the month of June: (Click the icon to view the information for sales.) All variances are to be computed in contribution-margin terms. Required 1. Calculate the sales-quantity variances for each product for June. 2. Calculate the individual-product and total sales-mix variances for June. Calculate the individual-product and total sales-volume variances for June. 3. Briefly describe the conclusions you can draw from the variances. Requirement 1. Calculate the sales-quantity variances for each product for June. Begin by determining the basic formula for Endo Corporation's static-budget total contribution margin (CM). Plain wine glasses Chic wine glasses Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted Static-budget )+( X X total CM Rearrange the formula to determine the sales mix for each product. The sales-mix percentage of Plain wine glasses is The sales-mix percentage of Chic wine glasses is %. 1%. Next, determine the formula and compute the budgeted CM based on actual units sold of all products at the budgeted mix. Budgeted CM based on actual The actual number of all glasses sold is units. units sold at the budgeted mix Now, determine the formula, and then calculate the sales-quantity variances for each product for June. Label each variance as favourable (F) or unfavourable (U). (Enter percentages, if any, as decimals rounded to two places, "X.XX".) Budgeted Budgeted Actual Budgeted X Sales-quantity variance Plain ( Chic ( ) x )x X X Requirement 2. Calculate the individual-product and total sales-mix variances for June. Calculate the individual-product and total sales-volume variances for June. Begin with the individual-product sales-mix variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable (F) or unfavourable (U). (Enter percentages, if any, as decimals rounded to two places, "X.XX".) Chic Plain ( ( Actual Budgeted Actual Budgeted )x X )x X )x X Sales-mix variance The total sales-mix variance is Now, calculate the individual-product sales-volume variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable (F) or unfavourable (U). Sales-volume Plain Chic ( )x )x X variance The total sales-volume variance is Requirement 3. Briefly describe the conclusions you can draw from the variances. Endo Corporation shows a(n) has shifted in favour of the higher-contribution-margin sales-quantity variance because it sold wine glasses. wine glasses in total than was budgeted. This is partially offset by a(n) sales-mix variance because the actual mix of wine glasses sold Sales information - ti Static-budget total contribution margin Budgeted units to be sold of all glasses Budgeted contribution margin per unit of Plain Budgeted contribution margin per unit of Chic Total sales-quantity variance Actual sales-mix percentage of Plain $13,800 2,300 units $5 per unit $10 per unit $6,000 U 60% Print Done