Question

Paquindo Co. has two products: X and Y. The firm had the following budget and operating results for the period just ended. The budgeted total industry sales for both products was 324,800 units and the actual industry sales was 350,000.

Master Budget
	Product X	Product Y	Total
Sales	$324,800	$426,300	$751,100
Variable costs	194,880	213,150	408,030
Contribution margin	129,920	213,150	$343,070
Fixed costs	162,000	130,000	292,000
Operating income	($32,080)	$83,150	$51,070
Selling price per unit	$160	$70
Operating Results	Product X	Product Y	Total
Sales	$365,400	$457,500	$822,900
Variable costs	243,600	201,300	444,900
Contribution margin	121,800	256,200	378,000
Fixed costs	163,000	130,000	293,000
Operating income	($41,200)	$126,200	$85,000
Units sold	2,100	4,900

Required:

1. Calculate the contribution margin sales volume variance for Product X.
2. Calculate the contribution margin sales volume variance for Product Y.
3. Calculate the sales mix variance for Product X.
4. Calculate the sales quantity variance for Product X.
5. Calculate the sales mix variance for Product Y.
6. Calculate the sales quantity variance for Product Y.
7. Calculate the market share variance for both products.
8. Calculate the market size variance for both products.

Answer 1

Data for sales variance. Budget Budgeted Ratio Actual for Actual Ducentity IP B. Qlunt B.S.P.(t) Total ($) AQ. ASP Total IX 2030 160 324800 1750 2100 174 365400 (caluated to 77000f2030 [ 365.4000] [ below - L 82o V 6090 70 426300 5250 14900 93.37457500 57000X 60967 I below 8ROJ 2100 إعلی لبرللنل 8120 7000

ADA) Calculation of contribution margen sales volume Variance for productt Budgeted sales of prodent & = $324800 Budgeted selling price = $160 Budgeted sale Quantity of product y = $324800 $160 2 2030 unit Actual sale oucentity of productX = 2100 unit Budgeter contribution per unit a Toral contribution margin - Total Bugeted sale ondertity =/२११२० 2030 & 64 per unit 2 Contribution margir I Budgeted L Quantity Tales volume variance = Actual 7 Budgeted contribution - Quantity per unit = [2030 - 2100] 64 = $ 4480 F

Ango) Calculation of contribution margin sales volume i variance for producty. I Budgeted sales of product y = - 426300 Budgeted selling price per unit = $70 Budgeted scele Quantity of product la $426300 26090 unit Acheal sale cuantity of product Y = 4900 unit Budgeted contribution per unit - Total Bedgeted contribution _ margen Total Budgeted sale Quantity $213150 6090 = $35 per unit Contribution margin sales volume variance = r Budgeted Actual 7 Budgeted contribution I Quantity oucentity & per unit = [6090 - 4900 35 z $41650

Ans-C Calculation of sale mit variance for Product x. salesmit - Budgeted Ratio - Actual Ratio / Budgeted variance for Actual Quantity for Actreal. I selling price Ouantity (SMU) (B.S.P. ) = [1750-2100] 160 a $56000F ANGD Calculation of Tale quantity variance for product sale quantity =/ Budgeted Qucentity - Acheal Decentity Budgeted variance CB 6.) CA.Q.o (sou) brice (B.S.P = ( 2030 -2100 160 - $ 11200F sell Ling Ano & Calculation of sale mit variance for Producty SMU= Budgeted Ratio - Achal Ratio / Budgeted I for Actreal Quantity for Altural / Selling price ducentity (B.S.P = (5250-4900 70 - $24500 A

for Any E calledation of sales quantity variance - Producty SOV = [ B.O. - AO ] B.se = [6090 - 4900] 70 = $83300 A