Question Details

Determine the total sales-volume variance 




1.	Harry's Electronics manufactures TVs and VCRs.  During February, the following activities occurred:

		TVs	VCRs
	Budgeted units sold	17,640	66,360
	Budgeted contribution margin per unit	$90	$156
	Actual units sold	20,000	80,000
	Actual contribution margin per unit	$100	$158


	Required:

Compute the following variances in terms of the contribution margin.

	a.	Determine the total sales-mix variance.

	b.	Determine the total sales-quantity variance.

	c.	Determine the total sales-volume variance .


2.	Speedy Printing manufactures soft cover books. For January, the following information is available:

	Budgeted market size (units)	125,000
	Budgeted market share	18%
	Budgeted average contribution margin per unit	$1.20
	Actual market size (units)	100,000
	Actual market share	19%
	Actual average contribution margin per unit	$1.22

	Required:

	Compute the market-share variance, the market-size variance, and the sales-quantity variance in terms of the contribution margin.




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