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Valet Co (6/14)
For part a) of this question, how to calculate the standard contribution per unit.
Also, should the sales mix contribution variance be calculated only in dollars, or should it be calculated in both dollars and units.
Also, when calculating the total sales mix contribution variance, should the actual mix and standard mix calculations be shown horizontally, or should the answer layout be in vertical form.
The question tells you the CS ratios for the two types of valet (the last line of the question) and also tells you the selling price for each type of valet (just above the budget and actual profit statements).
How you show your workings is completely irrelevant provided that you show them in a way that is easy for the marker to follow.
Have you watched my free lectures on CVP analysis and on sales mix variances?
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