Product X Product Y Expected total industry sales (units) 76,800 136,000 Expected S Company sales (units) 7,680 34,000 Budgeted selling price per unit 160 200 Budgeted contribution margin per unit 90 125 Actual results for 20x2 included: Product X Product Y Actual industry sales 100,000 145,000 Actual S Company sales 12,000 31,900 Actual selling price (unit) 150 175 Required: 1. Calculate the sales-volume, sales-mix and market-share variances in terms of contribution margins. 2. In your opinion, when a large sales-volume favourable variance could be an issue?

Product X Product Y Expected total industry sales (units) 76,800 136,000 Expected S Company sales (units) 7,680 34,000 Budgeted selling price per unit 160 200 Budgeted contribution margin per unit 90 125 Actual results for 20x2 included: Product X Product Y Actual industry sales 100,000 145,000 Actual S Company sales 12,000 31,900 Actual selling price (unit) 150 175 Required: 1. Calculate the sales-volume, sales-mix and market-share variances in terms of contribution margins. 2. In your opinion, when a large sales-volume favourable variance could be an issue?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...

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Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P 4.00 P 3.00 Product B PI0.00 P12.00 Unit selling price Product A PI0.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared. Actual industry volume for the period was 2,000,000 units. The market size contribution margin variance is Select one: a. P240,000 U O b. P240,000 F c. P160,000 F d. PI60,000 U
Q7 Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Budget Actual Unit sales Product X 22,300 45,000 Product Y 88,000 76,000 Unit contribution margin Product X $ 5.90 $ 3.30 Product Y $ 17.00 $ 14.00 Unit selling price Product X $ 17.00 $ 14.00 Product Y $ 20.00 $ 21.00 Industry volume was estimated to be 1,854,000 units at the time the budget was prepared. Actual industry volume for the period was 2,470,000 units. Jackson measures variances using contribution margin. The total contribution margin sales volume variance of the period is: Multiple Choice $81,670 unfavorable. $141,590 favorable. $97,620 unfavorable. $70,070 unfavorable. $39,470 favorable.
Jheng Company has the following revenue and cost budgets for the two products it sells: Plastic GlassFrames Frames Sales Price P10.00 P15.00Direct Materials 2.00 3.00Direct Labor 3.00 5.00 Fixed Overhead 3.00 4.00Net Income per unit P2.00 P3.00Budgeted Unit Sales 100,000 300,000 The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgetedatP975,000. Assume that the company plans to maintain the same proportional mix. In numerical calculations,Jheng rounds to the nearest centavos and unit. 1. The total number of units Jheng needs to produce and sell to break even is: a. 150,000 units c. 177,273 units b. 354,545 units d. 300,000 units2. The total number of units needed to break even if the budgeted direct labor costs are P2 for plastic frames instead of P3 isa. 154,028 units c. 156,000 unitsb. 144,444 units d. 146,177 units3. Net income computed using variable costing would exceed net income computed using absorption costing if: a. Units sold…
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Budget Actual Unit sales Product X 22,500 42,000 Product Y 90,000 80,000 Unit contribution margin Product X $ 4.80 $ 3.90 Product Y $ 13.00 $ 14.00 Unit selling price Product X $ 13.00 $ 14.00 Product Y $ 30.00 $ 29.00 Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. The market size variance is:
Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount @ $ 700 @ 380 $ 319,200 (168,000) 151,200 $ 487,200 (259,200) 228,000 (114,000) $ 114,000 Sales 240 $168,000 560 @ $ 570 800 Variable cost (91,200) 76,800 |(19,000) $ 57,800 240 560 @ 300 = 800 %3D Contribution margin 240 320 560 @ 270 800 Fixed cost (95,000) Net income $ 56,200 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. f. Determine the margin of safety based on the combined sales…
S Baird Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.90 per unit $ 3.60 per unit $2,000 total $700 total Baird planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the pro forma income statement in contribution format that would appear in a master budget. BAIRD MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,800 Units 0 $ 0 Required A Required B >
Problem 3-25A (Algo) Determining the break-even point and margin of safety for a company with multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Sales Variable cost Contribution margin Fixed cost Net income Budgeted Budgeted Per Number Unit 840 @ $580 TARTARTH 360 @ 370 = (133,200) 840 390 840 190 = 159, 600 Budgeted Per Number Unit Required A Required B 360 @ $600 = $ 216,000 360 @ 230 = Amount 82,800 (10,000) $ 72,800 Complete this question by entering your answers in the tabs below. units Required C Required D Calculate the break-even point in total number of units. Break-even point = = Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. Required E d. Determine the number of units of each product Vernon must…
Kirchoff, Inc., manufactures a product with the following costs: Direct materials Per Unit Per Year P18.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses P11.90 P2.10 P1,422,000 P3.60 Fixed SG&A expenses The pricing calculations are based on budgeted production and sales P1,540,500
Q49 Arrow, Incorporated, manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Budget Actual Unit sales Product X 21,500 40,000 Product Y 89,000 79,000 Unit contribution margin Product X $ 6.00 $ 3.90 Product Y $ 13.00 $ 14.00 Unit selling price Product X $ 13.00 $ 14.00 Product Y $ 30.00 $ 29.00 Industry volume was estimated to be 1,865,000 units at the time the budget was prepared. Actual industry volume for the period was 2,400,000 units. Arrow measures variances using contribution margin. The weighted-average budgeted contribution margin per unit is: Multiple Choice $10.43. $11.64. $12.23. $9.12. $9.17.
Benson Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost $ 8.00 per unit $3.40 per unit $ 2,400 total $900 total Fixed manufacturing cost Fixed selling and administrative cost Bertson planned to produce and sell 2,700 units. Actual production and sales amounted to 3,000 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget Complete this question by entering your answers in the tabs below. Required A Required Prepare the pro forma income statement in contribution format that would appear in a master budget. BENSON MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,700 Units o