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Business, 08.02.2021 19:20 markeledwards699
The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following information for sales in the month of June 2014:
All variances are to be computed in contribution-margin terms.
Static-budget total contribution margin $15,525
Budgeted units to be sold of all glasses 2,300 units
Budgeted contribution margin per unit of Plain $5 per unit
Budgeted contribution margin per unit of Chic $12 per unit
Total sales-quantity variance $2,700 unfavorable
Actual sales-mix percentage of Plain 60%
Required:
1. Calculate the sales-quantity variances for each product for June 2014.
2. Calculate the individual-product and total sales-mix variances for June 2014. Calculate the individual-product and total sales-volume variances for June 2014.
3. Briefly describe the conclusions you can draw from the variances.
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The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following i...
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