Columnar Presentation of Sales-Volume, Sales-Quantity and Sales-Mix Variances for Adelaide

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Flexible Budget: Static Budget:

Actual Units of Actual Units of Budgeted Units of
All Products Sold All Products Sold All Products Sold
× Actual Sales Mix × Budgeted Sales Mix × Budgeted Sales Mix
× Budgeted × Budgeted × Budgeted
Contribution Contribution Margin Contribution
Margin per Unit per Unit Margin per Unit
(1) (2) (3)
Panel A:
Lower-tier (10,000 × 0.36a) × $17 (10,000 × 0.44b) × $17 (12,500 × 0.44b) × $17
3,600 × $17 4,400 × $17 5,500 × $17
$61,200 $74,800 $93,500
$13,600U $18,700 U
Sales-mix variance Sales-quantity variance
$32,300 U
Sales-volume variance
Panel B:
Upper-tier (10,000 × 0.64c) × $8 (10,000 × 0.56d) × $8 (12,500 × 0.56d) × $8
6,400 × $8 5,600 × $8 7,000 × $8
$51,200 $44,800 $56,000
$6,400 F $11,200 U
Sales-mix variance Sales-quantity variance
$4,800 U
Sales-volume variance
Panel C: $112,400e $119,600f $149,500g
All Tickets $7,200 U $29,900 U
(Sum of Lower- Total sales-mix variance Total sales-quantity variance
tier and Upper-
tier Tickets) $37,100 U
Total sales-volume variance
F = favorable effect on operating income; U = unfavorable effect on operating income.

Actual Sales Mix: Budgeted Sales Mix:

aLower-tier = 3,600 ÷ 10,000 = 36% bLower-tier = 5,500 ÷ 12,500 = 44%
cUpper-tier = 6,400 ÷ 10,000 = 64% dUpper-tier = 7,000 ÷ 12,500 = 56%
e$61,200 + $51,200 = $112,400 f $74,800 + $44,800 = $119,600
g $93,500 + $56,000 = $149,500