Solution-Compute the sales-mix variance

Compute the sales-mix variance

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Reference no: EM132883331

Question - Show all of your work including computations.

A company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2020 are:

Static Budget	Residential	Office	Total
Number of chairs sold	520,000	280,000	800,000
Contribution margin	$52,000,000	$22,400,000	$74,400,000
Contribution margin/unit	$100	$80

Actual Results	Residential	Office	Total
Number of chairs sold	496,800	331,200	828,000
Contribution margin	$44,712,000	$26,496,000	$71,208,000
Contribution margin/unit	$90	$80

Required - Compute the following variances in terms of contribution margin:

a. Compute the sales-mix variance and the sales-quantity variance by type of chair, and it total for both types of chairs combined.

b. Compute the total sales-volume variance.

Reference no: EM132883331

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Compute the sales-mix variance

Reference no: EM132883331

Reference no: EM132883331

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