The Jinwa Corporation sells two brands of wine glasses, Plain and Chic Jinwa provides the following information for sales in the month of June 2013 Static budget total contribution margin $5,600 Budgeted units to be sold of all glasses 2,000 units Budgeted contribution margin per unit of Plain $2 p...

1 and 2 Solution Exhibit 1619 presents the salesvolume salesquantity and salesmix variances for the Plain and Chic wine glasses and in total for Jinwa Corporation in June 2013 The steps to fill in the ...

The Jinwa Corporation sells two brands of wine glasses, Plain and Chic. Jinwa provides the following information

Question:

The Jinwa sells two brands of wine glasses, Plain and Chic. Jinwa provides the following information for sales in the month of June 2013:
Static-budget total ....... $5,600
Budgeted units to be sold of all glasses....... 2,000 units
Budgeted per unit of Plain... $2 per unit
Budgeted per unit of Chic... $6 per unit
Total sales-quantity variance............ $1,400 U
Actual sales-mix percentage of Plain......... 60%
All variances are to be computed in contribution-margin terms.
REQUIRED
1. Calculate the sales-quantity variances for each product for June 2013.
2. Calculate the individual-product and total sales-mix variances for June 2013. Calculate the individual-product and total sales-volume variances for June 2013.
3. Briefly describe the conclusions you can draw from the variances.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...