Question
Top Hat Tuxedos sells three types of formal wear, Cummerbunds, Pocket Squares and Spats. The budgeted and actual sales and contribution margins for the
Top Hat Tuxedos sells three types of formal wear, Cummerbunds, Pocket Squares and Spats. The budgeted and actual sales and contribution margins for the month are as follows: Product Budget Budget Budget Sales $/unit VC/Unit CM/Unit Budget Units sold Cummerbunds $125 $15 $110 50 Pocket Squares $40 $5 $35 200 Spats $60 $15 $45 5 Product Actual Actual Actual Actual Sales $/unit VC/Unit CM/Unit Units sold Cummerbunds $120 $17 $103 60 Pocket Squares $35 $5 $30 300 Spats $30 $15 $15 10 (10 marks) Management is pleased that there is an increase in sales of cummerbunds -- the most profitable product. Calculate the Sales Mix and Sales Quantity Variance for each product. Was this a good decision to increase the cummerbund sales?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started