variance analysis working backward the jinwa corporation 268001

Variance analysis, working backward. The Jinwa Corporation sells two brands of wine glasses: Plain and Chic. Jinwa provides the following information for sales in the month of June 2011:

Static budget total contribution margin……………………………$11,000

Budgeted units to be sold of all glasses………………………………2,000 units

Budgeted contribution margin per unit of Plain……………………$4 per unit

Budgeted contribution margin per unit of Chic……………………$10 per unit

Total sales quantity variance……………………………………….$2,200 U

Actual sales mix percentage of Plain……………………………………60%

All variances are to be computed in contribution margin terms.

Required

1. Calculate the sales quantity variances for each product for June 2011.

2. Calculate the individual product and total sales mix variances for June 2011. Calculate the individual product and total sales volume variances for June 2011.

3. Briefly describe the conclusions you can draw from the variances.