Space Infonautics, Inc., produces handheld Windows CE™-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and MobileKid is a stripped-down version for the young adult market. You are Space 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 2020 are as follows:

Required

1. Compute the budgeted and actual average contribution margins in dollars for each product and in total for the third quarter of 2020.

2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2020.

3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2020.

4. Given that your CEO is known to have temper tantrums, you want to be well prepared for this meeting. In order to prepare, write a paragraph or two comparing actual results to budgeted amounts.

Transcribed Image Text:

Budgeted Operating Data, Third Quarter 2020 Mobile Pro MobileCE MobileKid Selling Price $380 274 146 Actual Operating Data, Third Quarter 2020 MobilePro MobileCE MobileKid Selling Price $351 284 115 Variable Cost per Unit $185 97 65 Variable Cost per Unit $180 92 73 Contribution Margin per Unit $195 177 81 Contribution Margin per Unit $171 192 42 Sales Volume in Units 5,550 44,400 61,050 111,000 Sales Volume in Units 4,600 49,450 60,950 115,000