Columnar Presentation of Sales-Volume, Sales-Quantity, and Sales-Mix Variances

for The Robin’s Basket

Flexible Budget: Static Budget:
Actual Pints of Actual Pints of Budgeted Pints of
All Flavors Sold All Flavors Sold All Flavors Sold
× Actual Sales Mix × Budgeted Sales Mix × Budgeted Sales Mix
× Budgeted × Budgeted × Budgeted
Contribution Margin Contribution Margin Contribution Margin
per Pint per Pint per Pint
(1) (2) (3)
Panel A:
Mint choc. chip (112,500 × 0.30a) × (112,500 × 0.35b) ×
$4.20 $4.20 (100,000 × 0.35b) × $4.20
33,750 × $4.20 39,375 × $4.20 35,000 × $4.20
$141,750 $165,375 $147,000
$23,625 U $18,375 F
Sales-mix variance Sales-quantity variance

$5,250 U
Sales-volume variance

Panel B:
Vanilla (112,500 × 0.50c) × (112,500 × 0.45d) × (100,000 × 0.45d) × $5.80
$5.80 $5.80 45,000 × $5.80
56,250 × $5.80 50,625 × $5.80
$326,250 $293,625 $261,000
$32,625 F $32,625 F
Sales-mix variance Sales-quantity variance

$65,250 F
Sales-volume variance

Panel C: (112,500 × 0.20e) × (112,500 × 0.20f) ×

Rum Raisin $4.00 $4.00 (100,000 × 0.20f) × $4.00
22,500 × $4.00 22,500 × $4.00 20,000 × $4.00
$90,000 $90,000 $80,000
$0 $10,000 F
Sales-mix variance Sales-quantity variance

$10,000 F
Sales-volume variance

F = favorable effect on operating income; U = unfavorable effect on operating income.

Actual Sales Mix: Budgeted Sales Mix:
aMint choc. chip =33,750 ÷ 112,500= bMint choc. chip =
30%   35,000 ÷ 100,000 = 35%
cVanilla = 56,250 ÷ 112,500 = dVanilla =   45,000 ÷ 100,000 =
50% 45%
eRum raisin = 22,500 ÷ 112,500= 20% f Rum raisin = 20,000 ÷ 100,000 =
20%