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    Determine the gross margin mix, selling price, variances

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    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:


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

    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.

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    Solution Summary

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