Blue States Coffee, Inc

Essay

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:

Budgeted and actual fixed corporate-sustaining costs are $60,000 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.