Variance analysis, sales-mix, and sales-quantity variances. Aussie Infonautics Inc. pro-

1. Palm Pro actual duces handheld Windows CE-compatible organizers. Aussie Infonautics markets three contribution percent, 16% different handheld models. PalmPro is a souped-up version for the executive on the go;

PalmCE is a consumer-oriented version; and PalmKid is a stripped-down version for the young adult market. You are Aussie 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 2010 are as follows: Budgeted Operating Data, Third Quarter 2010

REQUIRED 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2010.
an ata the actual and budgeted sales mixes for the three products for the third quarter of 2010.
3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2010. (Calculate all variances in terms of contribution margins.)
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.LO1

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Variable Cost Contribution Margin per Unit Selling Price per Unit PalmPro $379 $182 PalmCE 269 98 PalmKid 149 65 Sales Volume in Units $197 171 12,500 37,500 84 50,000 100,000