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Good Day
I have been attemting a sales volume variance, sales mix variance and a sales quantity variance. My challenge is on the calculation of contribution per unit / profit per unit since on the question there is only a standard rate and an actual rate. In such circumstances how do l calculate with the statistics when not given the costs
I would need to see the actual question.
The sales mix and quantity variances are all calculated using the standard contribution per unit (assuming it is marginal costing and not absorption costing). All that is needed is the standard contribution.
However, calculation of these variances is not in the syllabus for Paper MA – only the sales volume variance is examinable. Mix and quantity variances are not examinable until paper PM.
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