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?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more