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Calculate the contribution margin for the flexible budget

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Calculate the contribution margin for the flexible budget 1. Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year’s performance, a forecast of industry sales, and the company’s expected share of the U.S. market. The following information is provided for March: Actual Budget Colombian Blue Mountain Colombian Blue Mountain Sales in pounds 7,000 lbs. 8,000 lbs. 6,400 lbs. 8,600 lbs Price per pound $25 $30 $25 $30 Variable cost per pound 11 14 12 13 Contribution margin $14 $16 $13 $17 Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000, respectively. Required: a. Calculate the actual contribution margin for the month. b. Calculate the contribution margin for the static budget. c. Calculate the contribution margin for the flexible budget. d. Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Calculate the contribution margin for the flexible budget

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