Marketing variance analysis Leo decided to open a new bar called Leo's Place near a large college campus. Leo's Place plans to offer only three products: a dark and a light beer on tap, and a bottled imported beer. In planning inventory and cash requirements, Leo estimated that beer sales would be 9,000 units a month, split approximately equally between the three products. In order to attract customers to its very small premises, Leo decided to set its prices very low during first six months of operations. The two draft beers will be sold for 75(1 a glass and the imported beer will be sold for $1.00 a bottle. The variable cost of the three products are expected to be 30^:, 35^, and 70

During the first month of operations, the bar sold only 8,600 units of product, and had a much lower dollar sales volume than expected. But Leo's Place still earned a larger profit than planned, based on the original estimates. Actual data showed that all the beer sold for the expected price, but the sales mix was 50 percent light beer, 40 percent dark beer, and only 10 percent for the imported beer. Also, the unit variable costs of the beers were 29