Archoid's Flowering Plants provides the following information for the month of May:

For May, the company will report a(n) ________. (Round any intermediary calculations two decimal places.)
A) favorable sales-mix variance
B) unfavorable sales-mix variance
C) favorable market-share variance
D) unfavorable market-share variance

Question

Archoid's Flowering Plants provides the following information for the month of May:

For May, the company will report a(n) ________. (Round any intermediary calculations two decimal places.)
A) favorable sales-mix variance 
B) unfavorable sales-mix variance 
C) favorable market-share variance 
D) unfavorable market-share variance

Quizplus · Accepted Answer

Budgeted contribution margin per composite unit for the actual mix
= [$11 × (4600 / (4600 + 4500))] + [$23 × (4500 / (4600 + 4500))] = $16.88
Budgeted contribution margin per composite unit for the budgeted mix
= [$11 × (4,950) / (4,950 + 3,300))] + [$23 × (3,300 / (4,950 + 3300))] = $15.80

Archoid's Flowering Plants Provides the Following Information for the Month