CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution margin. Pertinent. data for the current year follow: Selling price Variable cost per unit. Contribution margin Fixed cost per unit. Operating income Sales in units Budgeted R66 $ 50 40 $ 10 6 $4 1,200- R100 $ 160 90 $. 70 30 $ 40 400 Actual R66 $ 55 43 $12 5 $7 1,000 R100 $ 155 95 $ 60 25 $ 35 1,000
CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution margin. Pertinent. data for the current year follow: Selling price Variable cost per unit. Contribution margin Fixed cost per unit. Operating income Sales in units Budgeted R66 $ 50 40 $ 10 6 $4 1,200- R100 $ 160 90 $. 70 30 $ 40 400 Actual R66 $ 55 43 $12 5 $7 1,000 R100 $ 155 95 $ 60 25 $ 35 1,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 32P: Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows:...
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[The following information applies to the questions displayed below.]
CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution margin. Pertinent
data for the current year follow:
Selling price
Variable cost per unit
Contribution margin
Fixed cost per unit
Operating income
Sales in units
What is the total sales volume variance?
Total sales volume variance
Budgeted
R66
$ 50
40
$ 10
6
1,200-
R100
$ 160
90
$.70
30
$ 40
400
Actual
R66
$ 55
43
$12
5
$7
1,000
R100
$ 155
95
$ 60
25
$ 35
1,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e7a4b87-e856-412e-a29f-eaa65c92cfbe%2F1fcbaa6b-8fff-407b-98b2-0178579d0f40%2Fp7is9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
CompuWorld sells two products, R66 and R100, and calculates sales variances using the contribution margin. Pertinent
data for the current year follow:
Selling price
Variable cost per unit
Contribution margin
Fixed cost per unit
Operating income
Sales in units
What is the total sales volume variance?
Total sales volume variance
Budgeted
R66
$ 50
40
$ 10
6
1,200-
R100
$ 160
90
$.70
30
$ 40
400
Actual
R66
$ 55
43
$12
5
$7
1,000
R100
$ 155
95
$ 60
25
$ 35
1,000.
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