Solution-Compute sales-mix variance and the sales-quantity

Compute sales-mix variance and the sales-quantity variance

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Reference no: EM132633636

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows:

Static Budget Zenith House-Helper Total

Number sold 20,000 80,000 100,000

Contribution margin $4,600,000 $15,200,000 $19,800,000

Actual Results Zenith House-Helper Total

Number sold 21,500 64,500 86,000

Contribution margin $6,665,000 $14,190,000 $20,855,000

Required:

Problem 1: Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

Reference no: EM132633636

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Compute sales-mix variance and the sales-quantity variance

Reference no: EM132633636

Reference no: EM132633636

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