Clean-It-Up manufactures industrial dryers and washers. The following information is available for February: Dryers washers Budgeted...
Clean-It-Up manufactures industrial dryers and washers. The following information is available for February:
| Dryers | washers | |
| Budgeted units sold |
10,000 |
40,000 |
| Actual sales (in units) | 8,820 | 33,180 |
|
Actual selling price per unit |
$700 | $900 |
| Budgeted selling price per unit | $710 | $930 |
|
Budgeted market share |
20% | 25% |
|
Actual market share |
25% | 24% |
|
Budget cont. margin /unit |
$275 | $375 |
REQUIRED:
a) Determine the sales-mix and sales-quantity variances. (6 marks)
b) Determine the market-share and market-size variances. (6 marks)
c) Discuss the potential causes of variance. (3 marks)
Homework Answers
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Clean-It-Up manufactures industrial dryers and washers. The
following information is available for February:
Dryers
washers
Budgeted...
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