The Tempest Company Has the Following Information for the Current

question 129

Essay

The Tempest Company has the following information for the current year.
The industry budget is 2 million units and the actual result for the industry is 2.5 million units.
Required:
1. Compute the contribution margin sales mix variance for product X.
2. Compute the contribution margin sales mix variance for product Y.
3. Compute the contribution margin sales volume variance for product X.
4. Compute the contribution margin sales volume variance for product Y.
5. Compute the contribution margin sales quantity variance for product X.
6. Compute the contribution margin sales quantity variance for product Y.
7. Compute the market share variance for Tempest.
8. Computer the market size variance for Tempest.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not classified as cash equivalents.

Dividends

Funds distributed by a company to its shareholders, typically from earnings.

Retained Earnings

Profits that a company has kept or retained rather than distributed to shareholders as dividends, which may be reinvested in the business.

Fiscal Year

A financial year used for accounting purposes, which in many countries is different from the calendar year.