Explore BrainMass

Explore BrainMass

    Determine the gross margin mix, selling price, variances

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Problem 21-1

    Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows:

    Budget

    Unit Sales Unit Margin
    Product 1 3200 10.00
    Product 2 1700 13.00
    Product 3 5100 9.00
    10,000 10.00
    Actual
    Product 1 2850 10.20
    Product 2 2500 12.58
    Product 3 4250 8.80
    9600 10.20

    Required:
    Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated individually.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:59 am ad1c9bdddf
    https://brainmass.com/business/accounting/determine-the-gross-margin-mix-selling-price-variances-372236

    Solution Summary

    Computations in excel so you have a template for other problems.

    $2.19

    ADVERTISEMENT