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