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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.
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