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Compute the sale-mix variance and the sales-quantity variance

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Compute the sale-mix variance and the sales-quantity variance 1. The Chair Company manufactures two modular types of chairs, one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 20×3 are: Static Budget Residential Office Total Number of chairs sold 260,000 140,000 400,000 Contribution margin $26,000,000 $11,200,000 $37,200,000 Actual Results Residential Office Total Number of chairs sold 248,400 165,600 414,000 Contribution margin $22,356,000 $13,248,000 $35,604,000 Prior to the beginning of the year, an office products research firm estimated the industry volume for residential and office chairs of the type sold by the Chair Company to be 2,400,000. Actual industry volume for the year 20×3 was only 2,200,000 chairs. Required: Compute the following variances in terms of contribution margin. a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total. c. Compute the market-share variance and market-size variance. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Compute the sale-mix variance and the sales-quantity variance

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