0.1

Soda-King manufactures and sells three soft drinks: A, B, C. Budgeted and actual results for 20x1 are as follows:

Budget for 20x1

Prod.

SPU

VCU

CMU Units Sold

A

$6.00

$4.00

$2.00

400,000

B

$4.00

$2.80 $1.20

600,000

C

$2.50

$7.00 $4.50 $2.50

1,500,000

Actual for 20x1

SPU

VCU

CMU

Units Sold

$6.20

$4.50

$1.70

480,000

$4.25 $2.75

$1.50

900,000

$6.80 $4.60

$2.20

1,620,000

Required:

1. Compute the static budget variance, the flexible budget variance, the sales-volume variance, the sales-mix variance, and the sales-quantity variance, all in terms of contribution margin.
2. Soda-King prepared the budget for 20x1 assuming a 10% market share based on total sales in the western region of the US. The total soft drink market was estimated to reach sales of 25 million units in the region. However, actual total sales volume in the western region was 24 million units. Calculate the market share and market size variances for Soda-King in 20x1.