Question

XYZ Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: Standard Super Budgeted sales in units 2,160 540 Budgeted selling price $500 $1,500 Budgeted contribution margin per unit $80 $250 Actual sales in units 1,820 980 Actual selling price $550 $1,400 The total sales-mix variance in terms of the contribution margin is ________.

Answer 1

The total sales-mix variance in terms of the contribution margin is -$65,200.

Step-by-step explanation:

To calculate the total sales-mix variance in terms of the contribution margin, we need to determine the budgeted contribution margin and the actual sales mix.

First, we calculate the total contribution margin (TCM) for the budgeted sales mix:

• Standard: Budgeted contribution margin per unit * Budgeted sales = $80 * 2,160 = $172,800
• Super: Budgeted contribution margin per unit * Budgeted sales = $250 * 540 = $135,000

Next, we calculate the actual contribution margin (ACM) for the actual sales mix:

• Standard: Actual selling price * Actual sales = $550 * 1,820 = $1,001,000
• Super: Actual selling price * Actual sales = $1,400 * 980 = $1,372,000

Finally, we calculate the sales-mix variance as TCM - ACM:

Total sales-mix variance = $307,800 - $2,373,000 = -$65,200

Answer 2

Sales mix variance= $71,400F

Step-by-step explanation:

A sales mix variance occurs when products are sold in a mix different from the standard mix. It can be calculated as follows:

Step 1: Actual total quantity sold = 1,820 + 980 =2,800

Step 2: Divide the actual total quantity sold into standard mix

Standard- 2160/2160+54)×2,800=2,240

Super -(540/2160+540)×2,800=560

Step 3: calculate mix variance as tabulated below

Product Std mix Actual mix Mix var Cont. Magin Mix Vari

Standard 2,240 1,820 420U 80 33,600 U

Super 560 980 420 F 250 105,000 F

Variance 71,400F

Sales mix variance= $71,400F