Variance analysis of revenues, multiple countries. Cola-King manufactures and sells cola soft drinks in three countries—Canada, Mexico, and the United States. The same product is sold in each market. Budgeted and actual results for 2007 (all in Canadian dollars) are as follows:

Budget for 2007 Actual for 2007 Units Units Country Selling Price per Carton Variable Cost per Carton Sold

(Cartons in Thousands)

SellingPrice per Carton Variable Cost per Carton Sold

(Cartons in Thousands)

Canada $6.60 $4.00 400,000 $6.82 $4.50 480,000 Mexico $4.40 $2.80 600,000 $4.68 $2.75 900,000 United States $7.70 $4.50 1,500,000 $7.48 $4.60 1,620,000 Required 1. Compute the flexible-budget variance, the sales-volume variance, sales-mix variance, and sales-quantity variance. Show results for each country in your computations.

2. What inferences do you make from the variances computed in requirement 1?