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Question - Clean-it-Up manufactures industrial dryers and washers. The following information is available for February
Budgeted units sold
Dryer 10,000
washers 40,000
Actual sales( in units)
Dryer 8,820
Washer 33,180
Actual selling price per unit
Dryer $700
Washer $900
Budgeted selling price per unit
Dryer $710
Washer $930
Budgeted market share
Dryer 20%
Washer 25%
Actual market share
Dryer 25%
Washer 24%
Budget cont. margin/unit
Dryer $275
Washer $375
Required:
A) Determine the sales mix and sales quantity variances.
B) Determine the market share and market size variances.
C) Discuss the potential causes of variance.
Valdez Company borrows $170,000 cash from a bank and in return signs an installment note for five annual payments of equal amount, with the first payment due.
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