Managerial 14.6 part 2b
28) The formula (budgeted contribution margin based on actual units sold of all products at the budgeted mix) - (contribution margin in the static budget) which is based on budgeted units of all products to be sold at budgeted mix) is equal to the:
A) sales-volume variance B) sales-mix variance D) Both A and B are correct.
27) A favorable sales-quantity variance would most likely be caused by:
a competitor having distribution problems with high-margin products
23) An unfavorable sales-mix variance would most likely be caused by:
a new competitor providing better service in the high-margin product sector
26) The sales-quantity variance will be unfavorable when:
actual unit sales are less than budgeted unit sales
25) The sales-quantity variance will be favorable when:
actual units of all products sold exceed budgeted units of all products sold
20) The sales-mix variance results from a difference between the:
budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix
17) The static-budget variance will be favorable when:
the actual contribution margin is greater than the static-budget contribution margin
29) The sales-quantity variance results from a difference between:
the actual quantity of units sold and the budgeted quantity of unit sales in the static budget
21) The sales-mix variance will be unfavorable when:
the actual sales mix shifts toward the less profitable units
22) The sales-mix variance will be favorable when:
the composite unit for the actual mix is greater than for the budgeted mix
18) More insight into the sales-volume variance can be gained by subdividing it into:
the sales-mix variance and the sales-quantity variance
19) The budgeted contribution margin per composite unit for the budgeted mix can be computed by dividing the:
total budgeted contribution margin by the total budgeted units
24) A shift towards a mix of products with a lower contribution margin per unit will most likely result in a(n):
unfavorable sales-mix variance
