Q3 Golden Shoes Part II

Fashion
Data/Workings:

Actual sales revenue (given) $205,200

Actual sales units (given) 5400

Actual sale mix (in units)
Actual selling price

Budgeted sales units 6000

Budgeted sales mix 0.5
Budgeted selling price
(given) $40

Bdg Unit CM
Bdg WACM

Budgeted
Market size (given)
Actual
Budgeted
Market share
Actual

Compute Variances:
Selling Price Variance

Sales Volume Variance

Sales Mix Variance

Sales Quantity Variance

Market size variance

Market share variance

Athletic Total

$262,200

4600 10000

6000 12000
0.5

$60

150,000
100,000
Q4: BSJ Prob 16:55
Budgeted Actual
Sales units (cases)
Domestic 22,000 22,350
Export 12,000 14,500
Total 34,000 36,850

Contribution margin per case

Domestic $26 $25
Export $22 $24
Total contribution margin
Domestic $572,000 $558,750
Export $264,000 $348,000
Total contribution margin $836,000 $906,750

Weighted-average budgeted contribution margin per unit

Sales units (cases) Industry Budget Industry Actual

Domestic 901,500 924,550
Export 635,400 645,750

Market Share Budgeted Actual

Domestic
Export

1. What is the market share contribution margin variance?

Domestic
Export
Total

2. What is the market size contribution margin variance?

Domestic
Export
Total

3. Selling price and sales volume variance

Actual price - Selling price
Budgeted price Actual volume variance
Domestic
Export

Budgeted Actual volume - Sales volume

contribution budgeted volume variance
Domestic
Export

4. Sales mix and quantity variance

Budgeted mix Actual mix
Domestic 22,000 22,350
Export 12,000 14,500
 34,000 36,850

Budgeted
contribution margin Difference in mix Total actual Sales Mix
per case from plan volume variance
Domestic $ 26
Export $ 22

Total actual units - Budgeted Sales quantity

total budgeted units Budgeted mix Contribution variance
Domestic 2,850 $ 26.00
Export 2,850 $ 22.00
or 2850 * WACM