Variance analysis, multiple products. Soda-King manufactures and sells three soft drinks:

operating income, $54,150 Kola, Limor, and Orlem. Budgeted and actual results for 2010 are as follows:

REQUIRED 1. Compute the total sales-volume variance, the total sales-mix variance, and the total salesquantity 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?LO1

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Budget for 2010 Actual for 2010 Variable Selling Cost per Cartons Selling Variable Cost per Cartons Product Price Carton Sold Price Carton Sold Kola $6.00 $4.00 400,000 $6.20 $4.50 480,000 Limor $4.00 $2.80 600,000 $4.25 $2.75 900,000 Orlem $7.00 $4.50 1,500,000 $6.80 $4.60 1,620,000