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The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $ 3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 - X Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $ 5.50 Done Cases Sold 520,000 900,000 1,690,000 X

The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $ 3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 - X Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $ 5.50 Done Cases Sold 520,000 900,000 1,690,000 X

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 40P: The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is...
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The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 X (...) Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $5.50 Done Cases Sold 520,000 900,000 1,690,000 - X
Transcribed Image Text:The Soda Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2022 are as follows: (Click the icon to view the budgeted data.) (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Requirement 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then, compute the budgeted contribution margins in dollars for each product and in total for 2022. Actual CM Kola Lima Oranga Total Budgeted data Kola Lima Oranga Budget for 2022 Selling Price $ 6.80 $ 4.80 $ 7.90 Print Variable Cost per Case $ 4.80 $3.40 $ 5.40 Done Cases Sold 560,000 640,000 1,900,000 X (...) Actual data Kola Lima Oranga Actual for 2022 Selling Price $ 7.00 $ 5.05 $ 7.70 Print Variable Cost per Case $ 5.30 $ 3.35 $5.50 Done Cases Sold 520,000 900,000 1,690,000 - X
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