14-32 Variance analysis, sales-mix and sales-quantity variances. Chicago Infonautics, Inc., pro- duces handheld Windows CET.compatible organizers. Chicago Infonautics markets three different handheld models: Palm Pro is a souped-up version for the executive on the go, PalmCE is a consumer- oriented version, and Palm Kid is a stripped-down version for the young adult market. You are Chicago Infonautics' senior vice president of marketing. The CEO has discovered that the total contribution mar- gin came in lower than budgeted, and it is your responsibility to explain to him why actual results are dif- ferent from the budget. Budgeted and actual operating data for the company's third quarter of 2012 are as follows: Budgeted Operating Data, Third Quarter 2012 Selling Price $374 Variable Cost per Unit S185 Contribution Margin per Unit $189 176 PalmPro PalmCE PalmKid Sales Volume in Units 13,580 35,890 47,530 97,000 272 Actual Operating Data, Third Quarter 2012 Selling Price $365 288 Variable Cost per Unit $175 Contribution Margin per Unit $190 PalmPro PalmCE Palmkid 194 Sales Volume in Units 10,120 32,200 49,680 92,000 110 Required 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2012 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2012. 3. Calculate total sales volume, sales-mix, and sales-quantity variances for the third quarter of 2012. (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