Question

The Tempest Company has the following information for the current year. Actual Budget Sales Units Product...

  1. The Tempest Company has the following information for the current year.
Actual Budget
Sales Units
Product X 22,000 20,000
Product Y 33,000 30,000
Total 55,000 50,000
Sales Mix for each Product
Product X 40.0% 40.0%
Product Y 60.0% 60.0%
Price
Product X $22.00 $20.00
Product Y $35.00 $30.00
Variable Cost per Unit
Product X $15.00 $14.00
Product Y $16.00 $18.00

The industry budget is 2 million units and the actual result for the industry is 2.5 million units.

Required:

  1. Compute the contribution margin sales mix variance for product X.
  2. Compute the contribution margin sales mix variance for product Y.
  3. Compute the contribution margin sales volume variance for product X.
  4. Compute the contribution margin sales volume variance for product Y.
  5. Compute the contribution margin sales quantity variance for product X.
  6. Compute the contribution margin sales quantity variance for product Y.
  7. Compute the market share variance for Tempest.
  8. Computer the market size variance for Tempest.
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Answer #1

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Given in Question Actual Budget Particulars Sales Units Product X Product Y Total 22,000.00 33,000.00 55,000.00 AQ = Actual Q(AQ BM RAQ 22,000.00 22,000.00 Contribution margin sales mix variance for product X Given $6 ($20-$14) No Variance (55000*40%BM 22,000.00 20,000.00 Contribution margin sales volume variance for product X Given BO $6 ($20-$14) Given Favourable 12000.0BM RAQ 22,000.00 L (55000*40%) 20,000.00 Contribution margin sales Quantity variance for product X BQ $6 ($20-$14) Given Favo2.20 Ans-7 Actual Market Share% Budgted Market share% Actual Industry sales quantity Avg Budgeted margin per unit Market Shar

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