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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Variance analysis, multiple products. The Split Banana, Inc., operates a chain of Italian gelato stores. Although the Split Banana charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its three Washington, DC, stores for August 2011 are as follows:
Budget for August 2011
Actual for August 2011
The Split Banana focuses on contribution margin in its variance analysis.
Required
1. Compute the total sales-volume variance for August 2011.
2. Compute the total sales-mix variance for August 2011.
3. Compute the total sales-quantity variance for August 2011.
4. Comment on your results in requirements 1, 2, and3.
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