The Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2015 are:
Required:
Compute the following variances in terms of contribution margin:
a.Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.
b.Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.
Definitions:
Liquor Sales
The commercial activity of selling alcoholic beverages, often regulated by laws that vary widely across different jurisdictions.
Wholesaler
An intermediary entity in the distribution channel that buys goods in large quantities from producers and sells them to retailers or other businesses, but not directly to consumers.
Moving Average
A technique used in time series analysis that smooths data points to help identify trends by averaging a number of adjacent values over a specified period.
Liquor Sales
The total volume or value of alcoholic beverages sold within a specific period, often used as an economic indicator.
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