(Solved) Aromatic Coffee Inc.. sells two types of coffee, Colombian and Blue Mountain. The monthly budget for ...

Aromatic Coffee Inc.. sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March:

            Actual            Budget
   Colombian   Blue Mountain   Colombian   Blue Mountain
Sales in pounds   14,000 lbs.   16,000 lbs.   12,800 lbs.   17,200 lbs

Price per pound   $12.50   $15.00   $12.50   $15.00
Variable cost per pound   5.50   7.00   6.00   6.50

Contribution margin   $7.00   $8.00   $6.50   $8.50

Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000, respectively.

Required:
a.   Calculate the actual total contribution margin for the month.
b.   Calculate the total contribution margin for the static budget.
c.   Calculate the total contribution margin for the flexible budget.
d.   Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

Aromatic Coffee Inc.. sells two types of coffee, Colombian and Blue Mountain. The monthly budget for ...

Cost Accounting: A Managerial Emphasis, Canadian Edition

Related Topics