Solution-Calculate the net gross margin variance directly

Calculate the net gross margin variance directly

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Reference no: EM131769286

Problem - Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows:

	Budget		Actual
	Unit Sales	Unit Margin	Unit Sales	Unit Margin
Product 1	3,200	$10.00	2,850	$10.20
Product 2	1,700	13.00	2,500	12.58
Product 3	5,100	9.00	4,250	8.8
	10,000	$32.00	9,600	$31.58

Question:

1. Determine the gross margin mix, selling price, and sales volume variances for each product.

2. Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated individually in question #1 for each product.

Reference no: EM131769286

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Calculate the net gross margin variance directly

Reference no: EM131769286

Reference no: EM131769286

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