Blue States Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly...
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Blue States Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March Actual Budget Colombian Blue Mountain Colombian Blue Mountain 15,000 Ibs. 17,000 Ibs. Sales in pounds 13,500 lbs. 18,000 lbs $16.00 9.00 $13.00 6.50 $16.00 9.00 S13.00 Price per pound Variable cost per pound 5.00 Contribution margin8.00 s700 Budgeted and actual fixed corporate-sustaining costs are S60,000 and $72,000, respectively Required a. Calculate the actual contribution margin for the month. b. Calculate the contribution margin for the static budget. c. Calculate the contribution margin for the flexible budget. d. Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin
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