FINAL EXAM

FINAL EXAM - 11 Aromatic Coffee Inc sells two types of...

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11 Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mou The monthly budget for U.S. coffee sales is based on a combination of las a forecast of industry sales, and the company's expected share of the U.S The following information is provided for March: Actual Columbian Mountain Blue Sales in pounds 7,000 8,000 Price per pound \$25 \$30 Variable cost (per lb) \$11 \$14 Contribution margin \$14 \$16 Budgeted costs \$60,000 Actual fixed costs \$72,000 Required: Columbian Mountain Blue \$25 \$11 \$14 7,000 Total \$30 \$14 \$16 8,000 15,000 Columbian \$25 \$12 \$13 6,400 Mountain Blue \$30 \$13 \$17 8,600 Total 15,000 Columbian Mountain Blue \$25 \$12 \$13 7,000 Total \$30 \$13 \$17 8,000 15,000 a. Calculate the actual contribution margin for the month (in total dollars). Selling price per unit (1) Variable cost per unit (2) Contribution margin per unit (3) = (1) - (2) Sales volume in units (4) b. Calculate the contribution margin for the static budget (in total dollars). Selling price per unit (1) Variable cost per unit (2) Contribution margin per unit (3) = (1) - (2) Sales volume in units (4) c. Calculate the contribution margin for the flexible budget (in total dollars. Hint: remember what the Selling price per unit (1) Variable cost per unit (2) Contribution margin per unit (3) = (1) - (2) Sales volume in units (4) d. Determine the total static-budget variance , the total flexible-budget variance , and the total sales-volume variance in terms of the contribution margin.

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Actual Results Static Budget Columbian \$98,000 \$91,000 \$83,200 Mountain Blue \$128,000 \$136,000 \$146,200 Level 2 \$1,000 U \$2,400 U Flexible Budget Var. Sales Volume Var. Level 1 \$3,400 U Static Budget Var. Flexible Budget
untain. st year's performance, pg 508-509 .S. market. Budget Columbian Mountain Blue 6,400 8,600 \$25 \$30 \$12 \$13 \$13 \$17 47% \$98,000 53% \$128,000 100% \$226,000 43% \$83,200 57% \$146,200 100% \$229,400 47% \$91,000 53% \$136,000 100% \$227,000 Sales mix (based on units) (5) Contribution

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FINAL EXAM - 11 Aromatic Coffee Inc sells two types of...

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