Emcee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows:

Required:
1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.
2. What inferences can you draw from the variances computed in requirement 1?

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Budget for 2017 Actual for 2017 Selling Variable Cost SellingVariable Cost Cartons Sold 132,000 108,000 Cart ons Product Kostor Limba Price $12.00 $15.00 per Carton $7.20 $8.25 Sold 130,000 120,000 Price $12.50 $16.00 r Carton $8.00 $7.75