Question
Wine distributers is a wholesaler of wine, buying from wineries and selling to wine stores. Three different white wines are sold: Chablis, Chardonnay end Riesling.
Wine distributers is a wholesaler of wine, buying from wineries and selling to wine stores. Three different white wines are sold: Chablis, Chardonnay end Riesling.
Here are budgeted and actual sales data for the first quarter.
|
| Chablis | Chardonnay | Riesling | Market |
| Standard Contribution margin | $ 7,00 | $ 8,25 | $ 6,75 |
|
| Standard quantity | 10.000 | 4.000 | 12.000 |
|
| Actual contribution margin | $ 7,25 | $ 8,10 | $ 7,10 |
|
| Actual quantity | 8.000 | 6.000 | 11.000 |
|
| Expected market share |
|
|
| 0,05% |
| Actual market size |
|
|
| 62.500.000 |
Required:
- Calculate the sales volume variance for each product and in total.
- Calculate the sales mix variances and the sales quantity variances for each product and in total.
- Calculate the market share variance and the market size variance.
- Write a short memo interpreting to management the variances in a, b and c.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
