Question

Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Budgeted wt Budgeted Actual 28,290 18.eee 46,020 28,350 20, 500 48,850 100 192 $ 99 184 Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export $ 32 $ 31 $896,99 396,680 $878,850 615,000 $28.8870 Industry Budget Industry Actual Sales units (cases) Domestic Export 931,500 659.480 954,550 669,750 The budget was prepared with the expectation that the currency exchange rate would be $1.35 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.54 per euro.

1. What is the market share variance?

2. What is the market size variance?

3. What is the selling price variance and sales volume variance?

4. What is the sales mix variance and sales quantity variance?

PLEASE PROVIDE CALCULATIONS

Answer 1

clasSMate Date Page Market Share Vaniances Sol t Can be calculated by using the follocoing farmula. 2(Actual Market wahore % - Budgeted Hatket Share %)X Conti bulionfunit Total market în unik 'x ) Domestic Mar kets Actal Marlat share Yy. 28350 954550 Ld Market share'Ya 28000 XI00 > 3:0059% 2-97% X160 Bulgaeted 931500 Variance: (2-97-3-0059)% x 954 550 x 32 10976(Adrerse). ) Espat Market Actual larket Share 3.0608:%- 20300 x100 669750 A 2:7296% 18000 659400 Budgeted ManketShare a Vaniance a (3.0608 - 2.7296) x 669.750:X22 Kte (Favowrable) $48796

) Manket Sige Vxiance: wing Market Sige varia niecan be caleulated क (Adtial Marlectet sig - Budget tasket Size ) X Budgeted Marleet share x (ontibulien fllow ing pamila A Domutis: (954550-931s00)x 28000 x 32 931500 $ 22176(Favouta ble) (664750--659400) X 18o00 X22 659400 $6204( Favbourable). 3) Selling Porice Variance ( Budgeted Selling Price - A hual Selting Rrite)X Actual unik Vesald पार (100 -99)X 28350 28 350 ( Advense) Erpat (104-102) X 20500 $41000 ( Favowrable).

clasSMate Date Page ) Salen Volume Variance: 2. (Budgeled Salen - Actual Salen)x Carhitaukiom unit a Domestic (28000 - 28350) x 32 11200 (favowtable). b) fapat: 18000 -20500)x22 ssob0 ( faveuirakle) 4) Sales Mix Variance : • sita Budgefed Cortbibukion x(Achual fuanbily, Revised Achial Buast + Revised Actual quantih n Actal quankly in standard Bahe. Act quaniy z 28 350 +20500 48850 48850 x 28000 46000 Domahic. 2৭+ 35 bapat 48850 x 18000 46000 19115. a) Domatic: 32x (28350 -217 35) $ 44320 (Adverue)e 2) 22x(20500-19115) 4 30470 ( tavourable).

Date Page 4) Sala Quankily Variance: ) Budlgeted Conhibutionx(Revined Actual quarndihy Budgehd quankily). স্াম्সজ 32x ( 29735-928000) $455520 (Favourable) DExpat 22x ( 19115- 18000) $24530(Favourable Note: This queshion han been adved uning approach alkrnatse, we Yan alo udve wing price approach- MA गक wfap Contibulion