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The Italia's Ice Cream operates a chain of Italian gelato stores. Although the Italia's Ice Cream charges customers the same price for all flavors, production
The Italia's Ice Cream operates a chain of Italian gelato stores. Although the Italia's Ice Cream charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D.C., store for August 2014 are as follows Budget for August 2014 SP/Pint VC/Pint Sales Volume (in pints) 35,000 45,000 20,000 100,000 CM/Pint Mint Chocolate Chip Vanilla Rum Raisin 9.004.80 4.20 9.00 $3.20$ 5.80 9.00$5.00 4.00 Actual for August 2014 Mint Chocolate Chip Vanilla Rum Raisin SP/Pint VC/Pint CM/Pint Sales Volume (in pints) 33,750 56,250 22,500 112,500 9.00$4.60 4.40 9.00$3.25 5.75 9.00 $5.15$ 3.85 The Italia's Ice Cream focuses on contribution margin in its variance analysis. Required 1. Compute the total sales-volume variance for August 2014: ANSWER 2. Compute the total sales-mix variance for August 2014: ANSWER 3. Compute the total sales-quantity variance for August 2014
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