SodaKing manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2013 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 2013 Variable Carton $4.00 $2.80 Actual for 2013 Variable Selling Cost per Crtons Selling Cost per Cartons Price Product Sold Price Carton Sold Kola Limor Orlem $6.00 $4.00 $7.00 400,000 600,000 S4.50 1,500,000 .80 $6.20 $4.25 $6.80 S4.50 S2.75 S4.60 900,000 1,620,000