Page 436 - PM Integrated Workbook 2018-19

Chapter 15

Sales quantity contribution variance:

Budgeted Actual Diff. Contribution Mix variance
sales sales at ($000)
quantity budget
mix

Tables 8,000 9,200 1,200 F $760 912.00 A
Chairs 26,000 29,900 3,900 F $94 366.60F
Sideboards 6,000 6,900 900 F $940 846.00 F

–––––– –––––– –––––––––

40,000 46,000 2,124.60 A
–––––– –––––– –––––––––

Or alternatively

Budgeted Contribution Mix variance
sales quantity ($000)
Tables 8,000 $760 6,080

Chairs 26,000 $94 2,444
Sideboards 6,000 $940 5,640

–––––– ––––––
40,000 14,164

–––––– ––––––

Weighted average contribution = $14,164 K/40,000 = $354.10

Sales quantity contribution variance = (46,000 – 40,000) × $354.10 =
$2,124.60

428