Need help with tis Contribution Margin Varianc, Contribution Margin Volume Varia
ID: 2452229 • Letter: N
Question
Need help with tis
Contribution Margin Varianc, Contribution Margin Volume Variance Sales Mix Variance Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it to the owner . The completev package adds maintanance of units and bookkeeping to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows Haysbert had budgeted the following amounts: Required Calculate the contribution margin variance. $ Calculate the contribution margin volume variance. Round the budjeted average unit contribution margin to four decimal places. Round your final answer to the nearest cent. Calculate the sales mix variance. Round the budgeted average unit contribution margin to four decimal places. Round your final answer to the nearest cent.Explanation / Answer
Actual result
Basic Complete Total
Selling price = 140 300 440
Variable expense = 85 240 325
Contribution (p.u.)= 55 60 115
Sales units= 2000 400 2400
Contribution= 110000 24000 = 134000
Budgeted result
Basic Complete Total
Selling price = 145 290 435
Variable expense = 90 242 332
Contribution (p.u.)= 55 48 103
Sales units= 1950 460 2410
Contribution= 107250 22080 = 129330
Contribution margin variance = Actual contribution - budgeted contribution
=134000- 129330
= 4670 (favourable)
Contribution margin volume variance = recovered - budgeted contribution per unit
=(0 - 129330 / 2410)
= 53.66 unfavourable
Sales mix variance = (Actual sales - budgeted sales )* contribution margin per unit
= (2400 -2410) * 103
=1030
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