Variance analysis of contribution margin, multiple products. Debbie’s Delight, Inc., operates a chain of cookie stores. Budgeted and actual operating data of its three Calgary stores for August 2007 are as follows:

Budget for August Selling Price per Kilogram Variable Costs per Kilogram Contribution Margin per Kilogram Sales Volume in Kilograms Chocolate chip $4.60 $2.50 $2.00 45,000 Oatmeal raisin 5.10 2.70 2.40 25,000 Coconut 5.60 2.90 2.80 10,000 White chocolate 6.10 3.00 3.70 5,000 Macadamia nut 6.60 3.40 3.10 15,000 100,000 Actual for August Selling Price per Kilogram Variable Costs per Kilogram Contribution Margin per Kilogram Sales Volume in Kilograms Chocolate chip $4.60 $2.60 $2.00 57,600 Oatmeal raisin 5.30 2.90 2.40 18,000 Coconut 5.60 2.80 2.80 9,600 White chocolate 6.10 3.40 2.70 13,200 Macadamia nut 7.10 4.00 3.10 21,600 120,000 Debbie’s Delight focuses on contribution margin in its variance analysis.

Required 1. Compute the individual product and total sales volume variances for August 2007.

2. Compute the individual product and total sales quantity variances for August 2007.

3. Compute the individual product and total sales mix variances for August 2007.

4. Comment on your results in requirements 1,2, and 3.