Miami Infonautics, Inc., produces handheld Windows CE-compatible organizers. Miami Infonautics markets three different handheld models: PalmPro is

Miami Infonautics, Inc., produces handheld Windows CEâ„¢-compatible organizers. Miami Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive on the go, PalmCE is a consumer-oriented version, and PalmKid is a stripped-down version for the young adult market. You are Miami Infonautics' senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company's third quarter of 2017 are as follows:

Budgeted Operating Data, Third Quarter 2017

Actual Operating Data, Third Quarter 2017

Required:
1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017.
2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017.
3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (Calculate all variances in terms of contribution margins.)
4. Given that your CEO gets very angry if actual results differ from budget, you want to be well prepared for this meeting. In order to prepare, write a paragraph or two comparing actual results to budgeted amounts.

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Selling Price S373 270 140 Variable Cost per Unit $181 100 Contribution Margin per Unit $192 170 Sales Volume in Units 10,215 38,817 53,118 102,150 PalmPro PalmCE PalmKid 80 60 Variable Cost Contribution Margin per Unit $195 18 Sales Volume in Units 12,360 42,230 48,410 103,000 Seling Friceerumiar sn s Palmtro PalmCE PalmKid 280 110 $175 96 76 34