1 answer

1. What is the market share variance? 2. What is the market size variance? 3. What...

Question:

Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same

1. What is the market share variance?

2. What is the market size variance?

3. What is the selling price variance and sales volume variance?

4. What is the sales mix variance and sales quantity variance?

PLEASE PROVIDE CALCULATIONS

I have the correct answers, but I cannot post them for some reason...please, don't post something if you do NOT KNOW what you are doing!!!

Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below Budgeted Wt Avg CM Budgeted Actual Sales units (cases) Domestic 28,e8e 18,080 46,0ее 28,35e 28.500 48,85e Export Total Price per case Domestic 99 1ее Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin 182 184 68 68 74 8e 32 31 22 зе Domestic $896, eee 396, 0ве $878, 850 615,08e Export $28.087e Industry Budget Industry Actual Sales units (cases) Domestic 931,58e 659,48e 954,550 669,750 Export The budget was prepared with the expectation that the currency exchange rate would be $1.35 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.54 per euro.

Answers

Answer:

3) Sales Price Variance = (Actual Price -Budgeted Price) * Actual Quantity

Domestic= ($99-$100)*28350 =$28350 Unfavourable

Export = ($104-$102) *20500 = $ 41000 Favourable

Sales Volume Variance = ( Actual Quantity- Budgeted Quantity)* Budgted margin Price

Domestic = (28350-28000) *32 = 11200 Favourable

Export = (20500-18000 )*22 = 55000 Favourable

4) Sales Mixed Variance and Sales Yield Variance

Particulars Budgeted Quantity Revised Budgeted Quantity Actual Quantity
Domestic 28000 29735 28350
Export 18000 19115 20500
Total 46000 48850 48850
Sales Mixed Variance = (Actual Quantity-Revised Budgeted Quantity)*Budged Margin per unit
Domestic (28350-29375)*$32 44320 Unfavourable
Export (20500-19115)*$22 30470 Favourable
Sales Yield Variance = (Revised Budgeted Quantity-Budgeted Quantity)*Budged Margin per unit
Domestic (29375-28000)*$32 44000 Favourable
Export (19115-18000)*$22 24350 Favourable
.

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