61) Richard's Electronics manufactures TVs and DVDRs. During April, the following activities occurred:

                             TVs  DVDRs

Budgeted units sold17,64066,360

Budgeted contribution margin per unit$45$78

Actual units sold20,00080,000

Actual contribution margin per unit$50$79

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.

62) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper         Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper         Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

a.Calculate the contribution margin for the flexible budget.

b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

63) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper        Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper        Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

64) The Chair 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 2012 are:

Static Budget        Residential     Office      Total

Number of chairs sold260,000140,000400,000

Contribution margin$26,000,000$11,200,000$37,200,000

Actual Results       Residential     Office      Total

Number of chairs sold248,400165,600414,000

Contribution margin$22,356,000$13,248,000$35,604,000

Required:

Compute the following variances in terms of contribution margin:

a.Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.

b.Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

65) Why would a manager perform customer-profitability analysis?

61) Richard's Electronics manufactures TVs and DVDRs. During April, the following activities occurred:

                             TVs  DVDRs

Budgeted units sold17,64066,360

Budgeted contribution margin per unit$45$78

Actual units sold20,00080,000

Actual contribution margin per unit$50$79

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.

62) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper         Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper         Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

a.Calculate the contribution margin for the flexible budget.

b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

63) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper        Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper        Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

64) The Chair 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 2012 are:

Static Budget        Residential     Office      Total

Number of chairs sold260,000140,000400,000

Contribution margin$26,000,000$11,200,000$37,200,000

Actual Results       Residential     Office      Total

Number of chairs sold248,400165,600414,000

Contribution margin$22,356,000$13,248,000$35,604,000

Required:

Compute the following variances in terms of contribution margin:

a.Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.

b.Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

65) Why would a manager perform customer-profitability analysis?

61) Richard's Electronics manufactures TVs and DVDRs. During April, the following activities occurred:

                             TVs  DVDRs

Budgeted units sold17,64066,360

Budgeted contribution margin per unit$45$78

Actual units sold20,00080,000

Actual contribution margin per unit$50$79

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.

62) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper         Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper         Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

a.Calculate the contribution margin for the flexible budget.

b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

63) The Omega 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 20X5 are as follows:

Static Budget      ZENITH   House-Helper        Total

Number sold15,00060,00075,000

Contribution margin$3,750,000$12,000,000$15,750,000

Actual Results      ZENITH   House-Helper        Total

Number sold16,50038,50055,000

Contribution margin$6,200,000$10,200,000$16,400,000

Required:

Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

64) The Chair 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 2012 are:

Static Budget        Residential     Office      Total

Number of chairs sold260,000140,000400,000

Contribution margin$26,000,000$11,200,000$37,200,000

Actual Results       Residential     Office      Total

Number of chairs sold248,400165,600414,000

Contribution margin$22,356,000$13,248,000$35,604,000

Required:

Compute the following variances in terms of contribution margin:

a.Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.

b.Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

65) Why would a manager perform customer-profitability analysis?

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