Gasconia Company produces three models of a product. Actual results from last year are as follows:
Model 1 Model 2 Model 3
Unit sales..........................2,725..............1,310..............965
Selling price.........................$52...............$68..............$34
Variable expenses...................$18...............$34..............$14
Gasconia had budgeted the following amounts:
Model 1 Model 2 Model 3
Unit sales..........................2,700............1,300............1,000
Selling price........................$ 50..............$ 70..............$ 30
Variable expenses..................$ 20.............$ 30..............$ 10
Required:
1. Calculate the contribution margin variance.
2. Calculate the contribution margin volume variance.
3. Calculate the sales mix variance.