Pet Toys, Inc., expected to sell one plush toy for each two chew toys sold. Planned sales and variable costs for last year were as follows:

During the year, a competitor came out with a similar plush toy at a lower price. Management reacted by dropping its selling price for plush toys, but the results were disappointing. Actual sales were as follows:

REQUIRED

A. Determine the revenue budget variance, the sales price variance, and the revenue sales quantity variance.

B. Determine the contribution margin budget variance, the contribution margin variance, and the contribution margin sales volume variance.

C. Determine the contribution margin sales mix variance and the contribution margin sales quantity variance.

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Sales (100,000 frisbees) Variable costs Contribution margin Chew Toys $300,000 175,000 $125,000 Plush Toys $150,000 50,000 $100,000 Total $450,000 225,000 $225,000 Chew toys (95,000 $3.30) Plush toys (40,000 @ $2.40) Total sales $313,500 96,000 409,500