Budgeted Numbers

Products Selling Price Variable Cost Market Size Market Share Sales Volume
A 39200 30200 116250 20% 23250
B 42000 31000 77500 20% 15500

Actual Numbers
Products Selling Price Variable Cost Market Size Market Share Sales Volume
A 39020 29969 133333 18.75% 25000
B 41960 31382 66667 18.75% 12500
 First Level Analy
Actual
S.No. Particulars
A B Total
a Company Sales Quantiy 25000 12500 37500
b Sales Mix 66.67% 33.33% 100.00%
c Contribution Margin Per Unit 9051 10578 9560
d=Total a*b*c OR d= a*c Total Contribtuion Margin 226275000 132225000 358500000
Nature of Variance

Flexible Budget
S.No. Particulars
A B Total
a Company Sales Quantiy (Actual) 25000 12500 37500
b Sales Mix (Actual) 66.67% 33.33% 100.00%
c Contribution Margin Per Unit (Budgeted) 9000 11000 9666.67
d=Total a*b*c OR d= a*c Total Contribtuion Margin 225000000 137500000 362500000
Nature of Variance

Semi Flexible Budget

S.No. Particulars
A B Total
a = a Total*b Company Sales Quantiy (Actual) 22500 15000 37500
b Sales Mix (Budgeted) 60.00% 40.00% 100.00%
c Contribution Margin Per Unit (Budgeted) 9000 11000 9800.00
d=Total a*b*c OR d= a*c Total Contribtuion Margin 202500000 165000000 367500000
Nature of Variance

Market Flexible Budget

S.No. Particulars
A B Total
a Market Size (Actual) 133333 66667 200000
b Market Share (Budgeted) 20% 20% 20%
c=a*b Company Sales Quantity 26667 13333 40000
d Sales Mix (Budgeted) 60% 40% 100%
e=c Total *d Company Sales Quantity in Budgeted Mix 24000 16000 40000
f Contribution Margin Per Unit (Budgeted) 9000 11000 9800
g=e*f Total Contribtuion Margin 216000000 176000000 392000000
Nature of Variance
 First Level Analysis of Sales Variances
Static Budget 1-Static Budget Variance = Actual
Check A B Total Check A B
23250 15500 38750
60.00% 40.00% 100.00%
9000 11000 9800
0 209250000 170500000 379750000 0 17025000 -38275000
F U

Second Level Analysis of Sales Variances

dget 1.1- Flexible Budget Variance = Actual - Flexible 1.2 - Sales Volume Variance = Flexib
Check A B Total Check A B

0 1275000 -5275000 -4000000 0 15750000 -33000000

F U U F U

Third Level Analysis of Sales Variances

Budget 1.2.1 - Sales Mix Variance = Flexible- Semi Flexible 1.2.2 - Sales Quantity Variance = Semi Fl
Check A B Total Check A B

0 22500000 -27500000 -5000000 0 -6750000 -5500000

F U U U U

Fourth Level Analysis of Sales Variances

e Budget 1.2.2.1 - Market Share Variance = Semi Flexible- Market Flexible 1.2.2.2 - Market Size Variance = Market F
Check A B Total Check A B

0 -13500000 -11000000 -24500000 0 6750000 5500000

U U U F F
tic Budget Variance = Actual - Static
Total Check

-21250000 0
U

les Volume Variance = Flexible - Static Ralation Check = FBV+SVV=SBV

Total Check A B Total

-17250000 0 1 1 1
U

s Quantity Variance = Semi Flexible - Static Ralation Check = SMV+SQV=SVV

Total Check A B Total

-12250000 0 1 1 1
U

rket Size Variance = Market Flexible - Static Ralation Check = SMV+SQV=SVV

Total Check A B Total

12250000 0 1 1 1
F