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Question - Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows:
Budget
Unit Sales Unit Margin
Product 1 3200 10.00
Product 2 1700 13.00
Product 3 5100 9.00
10,000 10.00
Actual
Product 1 2850 10.20
Product 2 2500 12.58
Product 3 4250 8.80
9600 10.20
Required: Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated individually.
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