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68. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The sales mix variance for Product X is:
69. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The sales quantity variance for Product X is:
70. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The contribution margin sales volume variance for Product Y is:
71. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The selling price variance for Product Y is:
72. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The sales mix variance for Product Y is:
73. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The sales quantity variance for Product Y is:
74. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The weighted-average budgeted contribution margin per unit is:
75. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's total sales quantity variance for the period is:
76. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's market share variance for the period is:
77. Winston Co. had two products code named X and Y. The firm had the following budget for
August:
Product X Product Y Total
Sales $286,000 520,000 $806,000
Variable Costs 189,800 218,400 408,200
Contribution Margin $96,200 $301,600 $397,800
Fixed Costs 50,000 108,000 158,000
Operating Income $46,200 $193,600 $239,800
Selling Price per unit $110.00 $50.00
On September 1, the following actual operating results for August were reported:
Product X Product Y Total
Sales $360,000 $540,000 $900,000
Variable Costs 195,000 216,000 411,000
Contribution Margin $165,000 $324,000 $489,000
Fixed Costs 50,000 108,000 158,000
Operating Income $115,000 $216,000 $331,000
Units Sold 3,000 9,000
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of
the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The firm's market size variance for the period is:
78. Folsom Fashions sells a line of women's dresses. The company uses flexible budgets to
analyze its performances. The firm's performance report for November is presented below:
Actual Budget
Dresses sold 5,000 6,000
Sales $235,000 $300,000
Variable costs 145,000 180,000
Contribution margin $90,000 $120,000
Fixed costs 84,000 80,000
Operating income $6,000 $40,000
The effect of the sales volume variance on November's contribution margin is:
