Midwest Ice Cream Company

Midwest Ice Cream Company

Review the variances as presented by Roberts and break down the sales volume
variances attributable to sales mix, the part attributable to market share shifts and the
part actually attributable to volume changes.

Breakdown of overall variance

Contribution Variance
Industry volume {[12180000-
11440000]*0.50*0.4530} 1,67,619 F

Market Share {12180000[0.50-0.49]*0.4530} 55259 U

Sales Mix 5149.2535 F
1,17,509 F

Sales Mix Variance Analysis

Forecasted Forecasted Variance
Gallons Product on budget Actual [(f)-
Product Contribution[c] Sales Mix% mix[f] (a) (a)]*(c)]
Vanilla 0.4329 2409854 42.13% 2514346.76 2458212 24300.74 U
Choco 0.4535 2009061 35.12% 2096175.13 2018525 35214.33 U
Walnut 0.5713 48,883 0.85% 51002.60 50124 501.94 U
Butter scotch 0.4771 262185 4.58% 273553.50 268839 2249.29 U
Cherry 0.5153 204774 3.58% 213653.13 261240 -24521.52 F
Strawberry 0.4683 628560 10.99% 655814.75 747049 -42725.00 F
Pecan Chip 0.5359 157012 2.74% 163820.14 164377 -298.42 F
5720329 5968366 5968366 -5278.64 F

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