Question Details

What is the total sales-mix variance 



THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 9.
The Sasita Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20x3 were as follows:

	Static Budget	ZENITH	House-Helper	Total
	Number sold	5,000	20,000	25,000
	Contribution margin	$1,500,000	$3,000,000	$4,500,000

	Actual Results	ZENITH	House-Helper	Total
	Number sold	4,000	28,000	32,000
	Contribution margin	$1,280,000	$3,920,000	$5,200,000

Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the ZENITH and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units. 


1.	What is the contribution margin for the flexible budget?
	a.	$1,200,000
	b.	$4,200,000
	c.	$5,200,000
	d.	$5,400,000

	
2.	What is the total static-budget variance in terms of the contribution margin?
	a.	$900 favorable
	b.	$700 favorable
	c.	$200 unfavorable
	d.	$360 unfavorable

	
3.	What is the total flexible-budget variance in terms of the contribution margin?
	a.	$900 favorable
	b.	$700 favorable
	c.	$200 unfavorable
	d.	$360 unfavorable

	
4.	What is the total sales-volume variance in terms of the contribution margin?
	a.	$900 favorable
	b.	$1,260 favorable
	c.	$200 unfavorable
	d.	$360 unfavorable

	
5.	What is the total sales-quantity variance in terms of the contribution margin?
	a.	$200 unfavorable
	b.	$900 favorable
	c.	$360 unfavorable
	d.	$1,260 favorable

6.	What is the total sales-mix variance in terms of the contribution margin?
	a.	$200 unfavorable
	b.	$360 unfavorable
	c.	$900 favorable
	d.	$1,260 favorable

7. 	What is the budgeted contribution margin per composite unit of the budgeted mix?
	a.	$140.625
	b.	$180.000
	c.	$208.000
	d.	$162.500

8. 	What is the market-size variance?
	a.	$1,152,000 F
	b.	$108,000 F
	c.	$360,000 U
	d.	$1,260,000 F

9.	What is the market-share variance?
	a.	$360,000 U
	b.	$1,260,000 F
	c.	$1,152,000 F
	d.	$108,000 F





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