Smith Ltd has prepared the following information showing the actual contribution margin earned from the sale of its only product, and the planned contribution margin.

Required
Calculate the sales price variance, the sales volume variance and the variable expense variance. Report to your manager on what is revealed in the analysis.

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Sales - units Sales - dollars Variable expenses Contribution margin Budget 3200 $480000 256 000 $224000 Actual 3000 $468000 255 000 $213 000