14-38 Variance analysis, sales-mix, and sales-quantity variances. Space Infonautics, Inc., produces handheld Windows CETM-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and Mobilekid is a stripped-down version for the young adult market. You are Space 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 bud- get. Budgeted and actual operating data for the company's third quarter of 2017 are as follows: ASSIGNMENT MATERIAL Budgeted Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit MobilePro $380 $185 MobileCE 274 97 Mobilekid 146 65 Contribution Margin per Unit $195 177 81 Sales Volume in Units 5,550 44,400 61,050 111,000 Actual Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit MobilePro $351 $180 MobileCE 284 92 MobileKid 115 73 Contribution Margin per Unit $171 192 42 Sales Volume in Units 4,600 49,450 60,950 115,000 Required 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (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. 14-38 Variance analysis, sales-mix, and sales-quantity variances. Space Infonautics, Inc., produces handheld Windows CETM-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and Mobilekid is a stripped-down version for the young adult market. You are Space 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 bud- get. Budgeted and actual operating data for the company's third quarter of 2017 are as follows: ASSIGNMENT MATERIAL Budgeted Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit MobilePro $380 $185 MobileCE 274 97 Mobilekid 146 65 Contribution Margin per Unit $195 177 81 Sales Volume in Units 5,550 44,400 61,050 111,000 Actual Operating Data, Third Quarter 2017 Variable Cost Selling Price per Unit MobilePro $351 $180 MobileCE 284 92 MobileKid 115 73 Contribution Margin per Unit $171 192 42 Sales Volume in Units 4,600 49,450 60,950 115,000 Required 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (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
