Xenos Vector Software budgets for, and sells, a series of differentversions of its accounting software as follows:

BUDGET 2020 Selling Units Total

Per Unit: PriceVC CM Sold$CM Mix%

Alpha $350 $180$170 12,500

Beta $450 $ 90 $360 17,500

Delta$375 $ 95 $280 20,500

Totals 49,500

ACTUAL 2020

Alpha $350 $175 $175 17,500

Beta$450$92 $358 12,500

Delta$375$95 $280 20,500

Totals 50,500

Before proceeding with the analysis required, in point form, comment (briefly!)on the difference between the Budget and the Actual for each product, and on the reliability of the budgetary process to predict actual outcomes:

Alpha

Beta

Delta

Part II: Determine

1. The budget and the actual CM in dollars and in total for each product and the sales mix%, for the period ending Dec. 2020.

Use the following formula to determine the Sales Volume Variance:

Sales-mix CM Variance = Actual units all products sold X (Actual sales mix % - Budget sales mix %) X Budgeted CM

Alpha

Beta

Delta

2.

The sales quantity CM variance = (Actual units all products sold - Budgeted units all products sold) X Budgeted sales mix % X Budgeted CM/unit

Alpha

Beta

Delta

1. The sales-mix variance

Alpha

Beta

Delta

Your research has shown that the market for this software has grown by 15% since the budget was prepared. Assuming that at the time of the budget preparation, Xenox Vector Software had a 10% share of the market, prepare a brief report to accompany your calculations to be presented to Management

[20 marks] [25 minutes]