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Columnar Presentation of Sales

This document presents a columnar presentation of sales-volume, sales-quantity, and sales-mix variances for The Robin's Basket. It shows variances for three flavors - mint chocolate chip, vanilla, and rum raisin. For mint chocolate chip, there was an unfavorable sales-mix variance of $23,625 and a favorable sales-quantity variance of $18,375, resulting in an unfavorable sales-volume variance of $5,250. For vanilla, there were unfavorable variances of $32,625 for sales-mix and $32,625 for sales-quantity, resulting in an unfavorable sales-volume variance of $65,250. For rum raisin,

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Elliot Richard
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49 views

Columnar Presentation of Sales

This document presents a columnar presentation of sales-volume, sales-quantity, and sales-mix variances for The Robin's Basket. It shows variances for three flavors - mint chocolate chip, vanilla, and rum raisin. For mint chocolate chip, there was an unfavorable sales-mix variance of $23,625 and a favorable sales-quantity variance of $18,375, resulting in an unfavorable sales-volume variance of $5,250. For vanilla, there were unfavorable variances of $32,625 for sales-mix and $32,625 for sales-quantity, resulting in an unfavorable sales-volume variance of $65,250. For rum raisin,

Uploaded by

Elliot Richard
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Columnar Presentation of Sales-Volume, Sales-Quantity, and Sales-Mix Variances

for The Robin’s Basket


Flexible Budget: Static Budget:
Actual Pints of Actual Pints of Budgeted Pints of
All Flavors Sold All Flavors Sold All Flavors Sold
× Actual Sales Mix × Budgeted Sales Mix × Budgeted Sales Mix
× Budgeted × Budgeted × Budgeted
Contribution Margin Contribution Margin Contribution Margin
per Pint per Pint per Pint
(1) (2) (3)
Panel A:
Mint choc. chip (112,500 × 0.30a) × (112,500 × 0.35b) ×
$4.20 $4.20 (100,000 × 0.35b) × $4.20
33,750 × $4.20 39,375 × $4.20 35,000 × $4.20
$141,750 $165,375 $147,000
$23,625 U $18,375 F
Sales-mix variance Sales-quantity variance

$5,250 U
Sales-volume variance

Panel B:
Vanilla (112,500 × 0.50c) × (112,500 × 0.45d) × (100,000 × 0.45d) × $5.80
$5.80 $5.80 45,000 × $5.80
56,250 × $5.80 50,625 × $5.80
$326,250 $293,625 $261,000
$32,625 F $32,625 F
Sales-mix variance Sales-quantity variance

$65,250 F
Sales-volume variance

Panel C: (112,500 × 0.20e) × (112,500 × 0.20f) ×


Rum Raisin $4.00 $4.00 (100,000 × 0.20f) × $4.00
22,500 × $4.00 22,500 × $4.00 20,000 × $4.00
$90,000 $90,000 $80,000
$0 $10,000 F
Sales-mix variance Sales-quantity variance

$10,000 F
Sales-volume variance

F = favorable effect on operating income; U = unfavorable effect on operating income.


Actual Sales Mix: Budgeted Sales Mix:
aMint choc. chip =33,750 ÷ 112,500= bMint choc. chip =
30%   35,000 ÷ 100,000 = 35%
cVanilla = 56,250 ÷ 112,500 = dVanilla =   45,000 ÷ 100,000 =
50% 45%
eRum raisin = 22,500 ÷ 112,500= 20% f Rum raisin = 20,000 ÷ 100,000 =
20%

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