Question

Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows:

Budget Data
Product	Selling price per unit	Variable cost per unit	CM per unit	Sales volume in units	Sales mix (based on units)	Total Contribution Margin
Aces	10.00	2.00	8.00	123,000	61.50%	984,000
Bells	15.00	10.00	5.00	77,000	38.50%	385,000
				200,000		1,369,000
Actual Data
Product	Selling price per unit	Variable cost per unit	CM per unit	Sales volume in units	Sales mix (based on units)	Total Contribution Margin
Aces	11.00	2.50	8.50	115,000	63.89%	977,500
Bells	14.50	10.00	4.50	65,000	36.11%	292,500
				180,000		1,270,000

Product	Actual Market size in units	Budgeted Market Size in Units
Aces	200,000	210,000
Bells	100,000	90,000

Required:

Calculate the following variances:

1. Sales Mix Contribution Margin Variance
2. Sales Quantity Contribution Margin Variance
3. Market Share Variance
4. Market Size Contribution Variance
5. What conclusion can you make about the sales during the year?

Answer 1