VARIANCE ANALYSIS

PROBLEM #3

In 2001

Selling price: 10

Quantity sold:10

Unit cost:7

In 2002

Selling price: 9

Quantity sold: 13

Unit cost: 6

PLEASE COMPUTE THE FOLLOWING INDICATORS

• SALES
• COST
• MARGIN
• MARGIN RATE

PLEASE ANALYZE THE IMPACT OF VOLUME, PRICE AND COST CHANGES ON THE MARGIN

• IN TERMS OF VALUE
• IN TERMS OF MARGIN RATE

2001 - 2002 - Selling price 10 9 . Quantity 10. Selling price Quantity - Unit Cost Unit Cost - Volume Price 2001- impact impacto Cost impact 2002 Sales Total Cost Margin- Margin rate