Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 43

Contribution Margin Variance, Contribution Margin Volume Variance, Sales Mix Variance
Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows:

Haysbert had budgeted the following amounts:

Required:
1. Calculate the contribution margin variance.
2. Calculate the contribution margin volume variance.
3. Calculate the sales mix variance.