Question
In: Accounting
Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces...
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Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance
Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows:
Actual Budgeted Units sold 290,000 300,000 Sales $1,450,000 $1,515,000 Variable costs 652,500 636,300 Contribution margin $ 797,500 $ 878,700 Market size (in units) 1,250,000 1,200,000 Required:
1. Calculate the contribution margin variance and the contribution margin volume variance. In your computations, round the contribution margin per unit to three decimal places.
Contribution margin variance $ Contribution margin volume variance $ 2. Calculate the market share variance and the market size variance. In your computations, round the unit contribution margin to three decimal places and round the market share percentage to one decimal place (for example, .8439 would be rounded to 84.4%). Round your final answers to the nearest dollar. (CMA adapted)
Market share variance $ Market size variance $
Solutions
Expert Solution
| 1 | |||
| CM Variance = (Actual CM Per Unit – Budgeted CM Per Unit) × Actual Sales | ((797500/290000)-(878700/300000))*290000 | -$51,910 | |
| Contribution margin volume variance | |||
| Contribution margin volume variance = (Actual quantity sold – Budgeted quantity sold) × Budgeted average unit contribution margin | (290000-300000)*(878700/300000) | -$29,290 | |
| 2 | Market share variance | ||
| (Actual market share % - Budgeted market share %) x Total market in units x Average Budgeted Contribution perunit | ((290000/1250000)-(300000/1200000))*1250000*(878700/300000)) | -$65,903 | |
| Market size variance | |||
| Budgeted market share % x (Actual industry sales quantity in units - budgeted industry sales quantity in units)*(average budgeted contribution per unit) | ((300000/1200000)*(1250000-1200000)*(878700/300000)) | $36,613 | |
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ekkarill92 answered 1 year agoRelated Solutions
Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces...
Contribution Margin Variance, Contribution Margin Volume
Variance, Market Share Variance, Market Size Variance
Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s
performance report for April follows:
Actual
Budgeted
Units sold
290,000
300,000
Sales
$1,450,000
$1,515,000
Variable costs
652,500
636,300
Contribution margin
$ 797,500
$ 878,700
Market size (in units)
1,250,000
1,200,000
Required:
1. Calculate the contribution margin variance
and the contribution margin volume variance. In your computations,
round the contribution margin per unit to three decimal places.
Contribution margin...
Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces...
Contribution Margin Variance, Contribution Margin Volume
Variance, Market Share Variance, Market Size Variance
Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s
performance report for April follows:
Actual
Budgeted
Units sold
290,000
300,000
Sales
$1,450,000
$1,515,000
Variable costs
652,500
636,300
Contribution margin
$ 797,500
$ 878,700
Market size (in units)
1,250,000
1,200,000
Required:
1. Calculate the contribution margin variance
and the contribution margin volume variance. In your computations,
round the contribution margin per unit to three decimal places.
Contribution margin...
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Kingston Company provides management services for apartments and
rental units. In general, Kingston 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 complete
package adds maintenance of units and bookkeeping to the basic
package. Packages are priced on a perrental unit basis. Actual
results from last year...
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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 complete
package adds maintenance of units and bookkeeping to the basic
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Contribution Margin Volume Variance
Iliff, Inc., produces and sells two types of countertop
ovens—the toaster oven and the convection oven. Budgeted and actual
data for the two models are shown below.
Budgeted Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
($100 × 29,500)
$2,950,000
($149 × 14,500)
$2,160,500
$5,110,500
Variable expenses
460,000
800,000
1,260,000
Contribution margin
$2,490,000
$1,360,500
$3,850,500
Actual Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
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$2,050,000
($157 × 13,500)
$2,119,500
$4,169,500
Variable expenses
570,400
658,900
1,229,300 ...
Contribution Margin Variance Iliff, Inc., produces and sells two types of countertop ovens—the toaster oven and...
Contribution Margin Variance
Iliff, Inc., produces and sells two types of countertop
ovens—the toaster oven and the convection oven. Budgeted and actual
data for the two models are shown below.
Budgeted Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
($90 × 26,500)
$2,385,000
($151 × 16,000)
$2,416,000
$4,801,000
Variable expenses
470,000
670,000
1,140,000
Contribution margin
$1,915,000
$1,746,000
$3,661,000
Actual Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
($83 × 25,500)
$2,116,500
($165 × 12,000)
$1,980,000
$4,096,500
Variable expenses
535,200
739,000
1,274,200
Contribution...
Contribution Margin Format Example: Volume &n
Contribution Margin Format Example:
Volume
XX
Sales
XX
Variable Costs
(Listed)
XX
Variable Costs
(Total)
XX
Contribution
Margin
XX
Fixed Costs (Listed) XX
Fixed Costs
(Total)
XX
Operating
Income
XX
Data for all questions:
Stuckie produces white school glue. Their glue bottles are
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Bottle, packing material
$1.15
Pigments 0.57
Selling commission
0.14
Other ingredients 0.43
Fixed overhead costs are $34,475 per year. Fixed selling and
administrative costs are $6,720 per year. Nail Glow sold 35,000
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Required:
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sells for $5.90. Variable unit costs are as follows:
Acrylic base
$0.86
Bottle, packing material
$1.15
Pigments
0.57
Selling commission
0.14
Other ingredients
0.43
Fixed overhead costs are $34,475 per year. Fixed selling and
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bottles last year.
Required:
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Hermosa, Inc., produces one model of mountain bike. Partial
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Number of bikes produced and sold
500
800
1,000
Total costs
Variable costs
$
118,000
$
?
$
?
Fixed costs per year
?
?
?
Total costs
?
?
?
Cost per unit
Variable cost per unit
?
?
?
Fixed cost per unit
?
?
?
Total cost per unit...
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