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 ________.

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Kolawole845 Kolawole845 · Answer 1 · 2021-04-27T04:01:03+02:00

Answer:

Sales mix variance= $71,400F

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