Problem: Wine Distributors
Wine Distributors is a wholesaler of wine, buying from wineries and selling to wine stores. Three different white wines are sold: Chablis, Chardonnay, and Riesling. Here are budgeted and actual sales data for the month of April.
WINE DISTRIBUTORS
Budgeted and Actual Sales Data
April
Chablis Chardonnay Riesling Total
Standard sales price $7.00 $8.25 $6.75
Standard quantity 10,000 4,000 12,000 26,000
Actual sale price $7.25 $8.10 $7.10
Actual quantity 8,000 6,000 11,000 25,000
Required:
Write a short memo to management analyzing the operating performance for April.