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.